Venture capitalists, private investment firms under new rules
The Bangladesh Securities and Exchange Commission has announced that it will be making some changes to the rules and regulations governing Venture Capitalist and Private Equity firms.
The firms will be under the jurisdiction of the Alternative Investment Rules which will be published on a gazette notification and posted on the BSEC website. These rules were agreed upon by the BSEC on June 2, at which point a draft was created and posted on the website.
It was also published to national dailys to gauge the public opinion. A savar based Korean firm-- Kormop company, has already been warned for breaching these new rules. The firm falsified the amount of paid up-capital in its accounts (in the accounts it was Tk 14.17 crore while in real life it was actually closer to Tk 9.81 crore) and raised capital three times without the permission of the stock market regulator.
A portion of the rules, from page of the Alternative investment rules, is as follows; The funds cannot be raised through public issue or initial public offering; it can be raised only through private placement and it will not be listed or traded on the stock exchanges like other mutual funds.
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