Bangladesh Securities and Exchange commission (BSEC) will probe the business activities of asset management companies (AMCs) which are irregular to manage any funds or are not in operation.
The regulator recently found 10 such inactive asset management companies. They are They are Alif Asset Management Company, Invest Asia Capital Asset Management, BDV Asset Management Company, Meghna Asset Management, Bloominance Asset Management Company, Blue-Wealth Assets, Belt and Road Asset Management Company, Maslin Capital, BMSL Asset Management Company, and MBL Asset Management Limited.
Moreover, these companies are entitled as qualified investors and enjoy the quota facility of initial public offerings (IPOs) and qualified investor offers (QIOs) in the capital market.
Liquidity crisis, lack of sufficient skilled workforce and leaders, lack of proper disclosure, and goodwill are primarily responsible for this situation stated market insiders. As a result some companies failed to get funds and face challenges.
Till 17 August, BSEC has provided 51 licenses for asset management companies and till 7 June it has also provided 21 fund managers.
Source: The Business Standard