Capital Market Stabilisation Fund (CMSF) will make its maiden investment worth Tk 1.0 billion into Investment Corporation of Bangladesh (ICB) as TDR (transferable development rights) to boost liquidity flow in the capital market.
The Bangladesh Securities and Exchange Commission (BSEC) on Tuesday approved the proposal of such investment at a meeting held at BSEC office.
The BSEC officials said the proposal of investment worth Tk 1.0 billion was approved following the plea made by CMSF.
Besides, the securities regulator also approved proposal of facilitating the formation of a closed-end mutual fund namely Suborna Jayanti Fund.
As a sponsor, the CMSF will contribute Tk 500 million in the fund having a tenure of 10 years to mark 50 years of independence.
On June 27 last, the securities regulator had issued rules for the CMSF through a gazette notification published to help revitalise the capital market.
The objective of the CMSF is to support the country's stock market alongside settling investors' claims on undistributed or unsettled dividends.
At Tuesday's meeting, the securities regulator allowed JMI Holdings Requisite to raise a capital worth Tk 750 million under book building method.
The company will utilise the IPO (initial public offering) fund for the purpose of purchasing machinery, constructing building, land development, repaying bank loans and bearing IPO expenses.
As per the company's financial statement for the year ended on June 30, 2020, the weighted average of EPS stood at Tk 2.42 for five years.
For the same period, the company's net asset value (NAV) per share stood at Tk 27.78 (without revaluation), and the value is Tk 29.99 (with revaluation).
The company will issue shares to general investors at 20 per cent discount on the cut-off price.
Janata Capital and Investment is working as issue manager of the JMI Holdings Requisite.
The securities regulator has also approved draft prospectus of HFAML Shariah Unit Fund, an open-end mutual fund.
The initial size of the fund is Tk 250 million. The sponsor will contribute Tk 25 million and the remaining Tk 225 million will be collected through sales of units of Tk 10 each.
At Tuesday's meeting, the securities regulator also approved the draft prospectus of Bangladesh RACE Management Unit Fund.
The initial size of this unit fund is Tk 250 million of which Tk 25 million will be contributed by Bangladesh RACE Management Private Company, the sponsor of the fund.
The remaining Tk 225 million will be collected through sales of units of Tk 10 each.
