Corporate Governance of Mutual Fund In Bangladesh

Abstract

The mutual fund industry in Bangladesh was thrown open to the private sector in 1999. Since then the AMCs with mutual funds has grown in excess of Tk. 3500 crore with over 80% of the fund being managed by private sector AMCs. To protect the interest of the investors, SEC prescribed a structure to be followed by the financial institutions and mutual funds alike. The structure depends upon independent directors and statutory auditors. In order to safeguard investors’ money in the current unstable situation of Bangladesh stock market, corporate governance guidelines have been institutionalized. This paper attempts to critically review the requirements of mutual fund regulations in Bangladesh and their implementation by the various AMCs.

Keywords: Mutual Fund, Asset Management Company, Corporate Governance, Merchant Banks