Through DOS Circular No. 02 dated 24 November, 2015, Bangladesh Bank introduces the new rules.
The rules applicable to investment in non-listed special purpose fund/funds (Special Purpose Vehicle, Alternative Investment Fund or similar, stated as such fund(s) henceforth) which are registered with Bangladesh Securities and Exchange Commission (BSEC).
According to the rules, scheduled banks will abide by the following conditions while investing in the above mentioned fund(s) –
1) The total investment in such fund(s) made by any scheduled bank shall be limited up to Tk. 2 (Two) billion.
2) Before making any firm commitment to investment in such fund(s), the investor bank company shall have to apply for permission from Department of Off-site Supervision, Bangladesh Bank (BB). In this regard, a resolution passed in the Board of Directors of the bank describing the intention of investment in such fund(s) along with the latest information regarding position of Capital, Liquidity, Asset and Liability and other information as prescribed by Bangladesh Bank from time to time shall have to be submitted by the bank.
3) The investor bank company shall enter into an agreement with the trustee of such fund(s) so that no investment shall be made by such fund(s) with any related party of the investor bank company or no investment shall be made to purchase the share/debenture/bond or similar instruments of the investor bank or no fund shall be deployed in such investment which forms a financial claim over any other bank or financial institution in future certifying that no such investment has already been made. The copy of this agreement shall be submitted to Bangladesh Bank with application as described in clause (2) above.
4) Investment in such fund(s) shall not be included in the Capital market investment, under sub-section (1) of section 26Ka of the Bank-Company Act, 1991 (Amended up to 2013), of the investor bank.