The Bangladesh Securities and Exchange Commission (BSEC) has put a limit of trustee bonds asset holding.
According to a BSEC directive on Tuesday, a licensed trustee firm can take care of traditional bonds and Islamic asset backed securities worth up to 100 times of the trustee company’s paid up capital net worth.
Moreover, a trustee firm cannot serve more than 40 bonds and Sukuk simultaneously.
A trustee of securities could ensure the investors’ protection.
The trustee firms for debt or Islamic securities should have to ensure the quality of their services, said BSEC. It must have a qualified legal advisor with expertise in corporate and securities law and five years of experience, a Shariah advisor with knowledge of Islamic fiqh and five-year experience in Islamic finance to serve in the Islamic securities arena.
A compliance officer of trustee firms will not work on more than 10 securities.
Source: The Business Standard