First-ever separate platform for buying, selling open-end mutual funds on the cards
With the platform integrated into the alternative trading board, investors will be able to directly place buy and sell orders, subject to approval by brokerage houses.
The Dhaka Stock Exchange (DSE) is set to launch a dedicated web-based order collection system enabling the creation and redemption of open-end mutual fund units— an initiative currently absent in Bangladesh.
With the platform integrated into the alternative trading board, investors will be able to directly place buy and sell orders, subject to approval by brokerage houses.
Nuzhat Anwar, managing director of the DSE, said, "We are expecting to launch the Mutual Fund Platform by 30 June 2026. We believe this will help retail investors under a collective investment plan as per international best practice. We will arrange investor awareness programs for the product close to our launch date. We expect to launch the platform by June this year."
In a letter to the stock market regulator, seeking permission in August last year, the DSE said the initiative aims to modernise and streamline critical aspects of the capital market ecosystem in line with international best practices, reduce operational inefficiencies, mitigate systemic risk, and improve the overall investor experience.
Keep updated, follow The Business Standard's Google news channel
After securing the regulator's approval, the premier bourse has moved to set up the platform, floating a tender to procure and develop a web-based order collection system for the creation (buy) and redemption (sell) of units of open-end mutual funds on the alternative trading board (ATB).
The DSE has invited professional software development companies, system integrators, and solution providers to develop, supply, implement, integrate, and provide long-term support for the system.
The bourse said the platform will enable retail and institutional investors to conveniently buy and sell open-end mutual fund units through desktop terminals and mobile applications via stock brokers (TREC holders/panel brokers).
The solution must ensure seamless integration with the DSE, TREC holders, Central Depository Bangladesh Limited (CDBL), asset management companies (AMCs), custodians, and other stakeholders, it said.
The DSE has asked interested bidders to submit separate technical and financial proposals – either in sealed envelopes or as per updated submission guidelines – by 12 May.
According to a letter from the DSE, currently no dedicated exchange platform exists for the online creation and redemption system of open-end mutual fund units. Neighbouring countries operate web-based open-end mutual fund platforms for creation and redemption."
The letter also said that stakeholders' feedback indicates a strong consensus that the platform will enhance retail participation, increase daily turnover and simplify the redemption process.
For that, the bourse sought a regulatory amendment required to issue an order mandating that all open-end mutual funds be enlisted and traded through stock exchanges within a stipulated timeline.
Nuzhat Anwar said, after securing the regulatory approval, we have already begun to implement the platform as tender floated.
As per the data of the Bangladesh Securities and Exchange Commission (BSEC), currently, in the country, there are 140 mutual funds approved by the commission.
Of the funds, 36 mutual funds are closed-end with a market value of Tk4,481.26 crore and all the closed-end mutual funds are listed on the bourses.
A closed-end fund is an investment vehicle that raises capital by issuing a fixed number of shares at its inception and then invests that capital in financial assets such as stocks and bonds.
Also, there are 104 open-end mutual funds with an accumulated value of Tk8,593.5 crore.
Open-ended funds allow continuous buying/selling at net asset value (NAV) with no fixed share count, offering high liquidity and direct transactions with the fund manager.
