The securities regulator has asked the Asset Management Companies (AMCs) not to behave like retail investors, and instead play a supportive role to help revive the sluggish capital market.
The Bangladesh Securities and Exchange Commission (BSEC) made the call on Thursday at a meeting held at the BSEC office with the representatives of AMCs having significant participations in the market.
"Sometimes, institutional investors behave like retail investors who offload shares just after maturity. We have asked the AMCs to avoid such attitude," said a BSEC official.
BSEC Commissioner Dr. Shaikh Shamsuddin Ahmed chaired the meeting attended by 32 representatives of leading AMCs and BSEC officials.
The BSEC official said the AMCs have been urged to play a supportive role in a favourable situation by injecting funds within their capacity.
"The discussants have also opined that the country's economy is now in a good position to overcome any odds," he added.
The representatives of ICB Asset Management Company, RACE Asset Management, LR Global Bangladesh, AIMS of Bangladesh, IDLC Asset Management, Sandhani Asset Management, and Alliance Capital Asset Management, among others, attended the meeting.
Asked, a representative of an AMC said the overall market situation was discussed at the meeting.
"The BSEC has asked us to play a market-supportive role," he said.
Some representatives of the AMCs have also laid importance on unveiling more sources of funds for mutual funds, he added.
"Provident finds are not allowed to play the role of sponsors of mutual funds. Such funds should be allowed to act as sponsors," said the representative.
