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LR Global-bdnews24 tie-up

BSEC seeks all info on Tk 500m deal

FE Report | October 14, 2019 00:00:00

The securities regulator has asked LR Global Bangladesh Asset Management Company Limited to submit all information regarding its mutual funds' (MFs) Tk 500 million investment in bdnews24.com within 24 hours.

The Bangladesh Securities and Exchange Commission (BSEC) gave the instruction after a meeting at BSEC office in the capital on Sunday.

The regulatory stance came following a news on LR Global's investment in bdnews24.com.

"The commission has observed the news on LR Global's investment amounting to Tk 500 million in bdnews24.com. The BSEC has taken the decision of asking the fund manager to submit all information (in this regard) to the commission within next 24 hours," the BSEC said in statement.

The BSEC has also asked all concerned to refrain from such kind of investment and activities before receiving and scrutinising complete information from LR Global.

According to the news published on bdnews24.com on Sunday, LR Global Bangladesh invested Tk 500 million in the news portal to support expansion of its news automation and creativity.

"LR Global, led by Chief Executive Officer Reaz Islam, closed the investment deal with bdnews24.com in Dhaka last week," the news reads.

As per the existing rules, the funds collected under the scheme of a mutual fund can be invested only in listed securities, initial public offerings (IPOs), and transferable securities in the money market.

The mutual funds can also invest in the pre-IPO placement shares after taking regulatory consent.

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