The securities regulator urged the asset management companies (AMCs) on Thursday to support the country's stock market by utilising liquid portion of their funds.
The Bangladesh Securities and Exchange Commission (BSEC) made the appeal at a meeting with the AMCs - held at the BSEC office against the backdrop of recent unusual downtrend of the capital market.
BSEC Commissioner Dr Shaikh Shamsuddin Ahmed chaired the meeting, where the representatives of 34 AMCs were present.
"We have urged the AMCs to support the market by utilising cash reserves. Besides, we have advised them to search for new funds, which still remain idle in the hands of institutional investors," said the BSEC commissioner.
The securities regulator sat with the AMCs as part of its moves to ensure liquidity support for the stock market, which recently saw unusual decline in broad index.
The BSEC held another meeting with the chief financial officers of the listed banks on Wednesday, and urged them to invest in the stock market in line with the existing scopes.
Mr Ahmed said many banks and insurers have lack of efficient manpower for managing their portfolios.
"The AMCs have expertise in managing portfolios. On Thursday, we have told the AMCs to facilitate management of funds of the institutional investors," he added.
An AMC is a firm, which takes funds from various individual and institutional investors, and invests in various securities.
Presently, there are 52 AMCs licensed by the securities regulator. These fund managers manage assets worth around Tk 140 billion.
Asked, chief executive officer (CEO) of ICB Asset Management Company Limited (ICBAMCL) Ahmedur Rahman said the AMC representatives were urged to invest their liquid funds.
"In some cases, the AMCs' funds - realised as management fees - remain unused. The BSEC has advised the AMCs to invest such funds in the market through their own portfolios."
The AMCs also agreed to support the market in line with the regulatory advice.
"We have also been asked to search for institutional investors' funds, which can be utilised for the market," he added.
