BSEC suspends BO accounts of Race-managed funds

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Business Report :

The Bangladesh Securities and Exchange Commission (BSEC) issued an order on Monday, suspending all BO accounts of Bangladesh Race Management held in the names of various mutual funds managed by Race.
This suspension follows a BSEC inquiry that revealed the fund manager’s failure to “protect unit holders’ interest.”
“The respective trustees of the mutual funds managed by Bangladesh Race Management are required to take control of all BO IDs opened and maintained with any stock broker in the names of their respective mutual funds and report to the Commission with detailed holding statuses within the next seven working days from the issuance of this order,” the BSEC stated in its order.
Race manages ten closed-end mutual funds with holdings totalling approximately Tk3,000 crore.
The stock market regulator also directed that every custodian of the mutual funds under Race’s management ensure the closure of BO IDs opened and maintained in broker houses.