Non-banking financial institutions (FI) can now invest in the non-listed special purpose funds (e.g. Alternative Investment Fund, Special Purpose Vehicle, or any other similar fund) which are registered with Bangladesh Securities and Exchange Commission (BSEC). Through DFIM Circular No.04 dated 30 March 2016, Bangladesh Bank allows such investment.
On November 24, 2015, Bangladesh Bank issued a similar circular allowing the commercial banks to invest in such funds.
FI should follow the following guideline while investing in the non-listed special purpose funds:
1. The aggregate investment in such funds made by any FI shall not exceed 50 percent of its paid up capital.
2. The investment in such a single fund made by any FI shall not exceed 10 percent of its paid up capital or 20 percent of that particular fund, whichever is lower. [Read more…] about NBFI can invest in Alternative Investment Fund – Bangladesh Bank