DHAKA: The investors of Mutual funds in the capital market faced financial losses over the last one year for which they blamed stock market regulator Securities and Exchange Commission (SEC).
According to the investors, prices of some of the mutual funds dropped by 70-100% per unit in the last one year.
Many investors lost total capital as their investment was with the margin loan.
The capital of 19 mutual funds on November 8, 2009 was Tk 3,048 crore which has come now less than Tk 1500 crore.
Investors received major blow on October 26 last year when the SEC stopped margin loan for 20 Mutual funds as their prices were overvalued.
Against the backdrop of protest by the investors, the SEC had relaxed its restriction and allowed a 7% margin loan, but it could not check the slump. Conditions set by the SEC was met by only four mutual funds.
The SEC on December 23 directed that mutual funds with over 10 years would be closed. As a result, prices of mutual funds dropped once again.
“The decisions were not controversial, it was taken for the betterment of investors in the long run,” SEC member Mansur Alam told banglanews24.com.bd adding: “Price up-down is natural in stock market.”
Former president of DSE Rakibur Rahman said the investors knew who had taken the decision and made such volatile situation. The SEC should realise the side of the invertors.
“I bought mutual fund of Tk 15 lakh in 2009 and the present market price is Tk 7 lakh,” said an investor of mutual fund.
“The ambiguous decision by the SEC made me poor” he added.
BDST 2015 HRS, August 10, 2010