---

Nearly a year after setting up an online trading platform, the Chittagong Stock Exchange (CSE) is still waiting to launch digital trading of open-ended mutual funds, despite regulatory approval and a completed mock session.

Currently, equity securities and close-ended mutual fund units are traded online in the secondary market. But open-ended fund transactions remain manual.

Investors must apply directly to asset managers to buy units and transfer funds accordingly. Units are then credited to their BO accounts. To redeem holdings, investors again apply to the asset manager and coordinate with brokers to transfer units — a process market participants say is cumbersome.

Platform ready, rule in force

CSE chairman AKM Habibur Rahman said the exchange has already briefed the securities regulator, demonstrated the system and rectified issues based on feedback.

“We have demonstrated how it works and collected feedback. We have also rectified errors based on the feedback,” he said, adding that trading could begin within seven days once asset managers and the exchange reach an operational understanding.

The exchange also held a meeting with more than 50 asset managers and conducted mock trading on the platform.

Under revised mutual fund rules issued in November last year by the Bangladesh Securities and Exchange Commission (BSEC), open-ended mutual funds must be traded on an online platform endorsed by the regulator or stock exchanges. The rules also set a six-month deadline for launching online trading.

Asset managers hesitant

However, CSE Managing Director M. Shaifur Rahman Mazumdar said asset managers appear reluctant to adopt online trading. He noted that the revised rules may allow asset managers to develop their own platforms.

“We have found that asset managers are not interested in online trading in open-ended funds,” he said.

Shahidul Islam, managing director of VIPB Asset Management Company Limited, acknowledged awareness of the CSE platform but did not clarify why it has not been adopted.

“Yes, we know that there is a platform but we are yet to get the update,” he said.

Regulator ready

BSEC spokesperson Abul Kalam said the regulator is prepared to facilitate the process.

“We have made a clear rule to start an online platform. We have also given a time bound. We are also ready to present our position if the CSE arranges any meeting with asset managers,” he said, adding that the commission is willing to extend further assistance if required.

With the platform built, rules notified and mock trading completed, the delay now appears to hinge on coordination — leaving open-ended fund investors waiting for a long-promised digital shift.