BSEC Lifts Ban on RACE Dr. Hasan Taher Imam, Paving the Way for Market Stability.
The Bangladesh Securities and Exchange Commission (BSEC) has withdrawn their enquiry orders on the mutual funds managed by Bangladesh RACE Management PCL. As a result, the company can now operate its 13 mutual funds normally without any restrictions.
On February 13, 2025, an order signed by BSEC Chairman Khondoker Rashed Maqsood revised and withdrew the false and ill-motivated bans imposed on RACE. This decision is expected to contribute positively to the development of the Bangladesh capital market, allowing RACE and its mutual funds to resume normal operations.
Market stakeholders view BSEC’s decision as a positive step for the stock market. Over the past several months, RACE Management’s mutual fund activities had been suspended, creating uncertainty among investors. Investors had long been demanding the removal of these restrictions, as the normal operation of mutual funds is crucial for market stability and investor protection. According to a leading market analyst, mutual funds should be allowed to operate independently in the interest of the capital market. This will help restore investor confidence and play a significant role in the long-term growth of the stock market.
Previously, allegations were raised against former BSEC Chairman Professor Shibli Rubaiyat-ul-Islam for allegedly demanding bribes from RACE Management PCL and attempting to seize control of its funds. After failing in his attempt, he allegedly tried to tarnish the 15-year reputation of RACE and its owners.
BSEC, Lifts Ban, RACE, Paving the Way, Market Stability, Dr. Hasan Taher Imam, RACE, asset manager, ensures, BSEC, approximately, Tk, 700 crore, investment, BO accounts.
However, BSEC’s order BSEC/IEID/BRMPCL/Enquiry/2024/637 has completely nullified that attempt. A spokesperson from the Association of Asset Management Companies welcomed the regulatory decision, stating that nearly 70% of the mutual fund sector’s assets had been stuck under various investigations for an extended period.
The previous corrupt commission had initiated these investigations, which were continued by the current commission, preventing the market from regaining stability. However, if the newly led BSEC takes a market-friendly approach to resolving these issues, mutual funds can play a crucial role in revitalizing the capital market. We congratulate the current commission under the leadership of Chairman Khondoker Rashed Maqsood.