Bangladesh Securities and Exchange Commission Caps Limit on Assets a Trustee of Bonds Can Oversee

A licensed trustee firm in Bangladesh can oversee traditional bonds and Islamic asset-backed securities, such as Sukuk, valued up to 100 times the trustee company's paid-up capital net worth, according to a Bangladesh Securities and Exchange Commission (BSEC) instruction issued on the 14th of September 2021. The ratio will be 75 times if the trustee firm's net worth is lower than its paid-up capital.

Why it Matters?

The move is said to reduce the risks surrounding depending on a trustee that itself struggles financially. The BSEC also set some criteria for the trustee firms for debt or Islamic securities in order to ensure service quality.

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