DSE halts AIMS First MF trading over legal notice
Tuesday, 30 March 2010
FE Report
Dhaka Stock Exchange (DSE) halted trading in shares of AIMS First Mutual Fund Monday to protect the interest of investors, officials said. The embargo will continue until further instruction is given in this connection.
The move came following a legal notice issued Sunday on the securities regulator's rejection of AIMS's plea for bonus and rights dividend declarations.
The legal notice said Khondker Mahbub Uddin Ahmed and Associates obtained a three-month stay-order from the High Court on the Securities and Exchange Commission's (SEC) rejection of the bonus and rights dividends declaration.
However, SEC Chairman Zia-ul Haq Khandakar was not willing to say anything about the legal notice and further steps.
"As it's a sub judice matter, it's not possible to comment on the notice," the chairman said.
On February 24 last, the trustees of AIMS announced 70 per cent stock dividend for 2007-08 and 2008-09 and 130 per cent rights dividend. The same day the DSE halted its share trading to protect the interest of investors and the SEC sought an explanation from AIMS in favour of its declaration.
On March 2, AIMS said in its explanation that as it had a tenure of five years, the declaration would help it compete with other funds having large fund sizes.
On March 8 last, the normal trading of AIMS First Mutual Fund resumed, as the SEC rejected its dividend declaration.
On March 12, the SEC again turned down an appeal from AIMS for approval of its stock dividends and rights share in the interest of market.
The SEC rejection came after at a meeting between the trustees of AIMS and SEC Chairman Zia-ul Haq Khandaker.
Earlier the High Court in a verdict last year allowed close-end mutual funds to raise their fund size by issuing rights and bonus shares subject to approval of the SEC.
Dhaka Stock Exchange (DSE) halted trading in shares of AIMS First Mutual Fund Monday to protect the interest of investors, officials said. The embargo will continue until further instruction is given in this connection.
The move came following a legal notice issued Sunday on the securities regulator's rejection of AIMS's plea for bonus and rights dividend declarations.
The legal notice said Khondker Mahbub Uddin Ahmed and Associates obtained a three-month stay-order from the High Court on the Securities and Exchange Commission's (SEC) rejection of the bonus and rights dividends declaration.
However, SEC Chairman Zia-ul Haq Khandakar was not willing to say anything about the legal notice and further steps.
"As it's a sub judice matter, it's not possible to comment on the notice," the chairman said.
On February 24 last, the trustees of AIMS announced 70 per cent stock dividend for 2007-08 and 2008-09 and 130 per cent rights dividend. The same day the DSE halted its share trading to protect the interest of investors and the SEC sought an explanation from AIMS in favour of its declaration.
On March 2, AIMS said in its explanation that as it had a tenure of five years, the declaration would help it compete with other funds having large fund sizes.
On March 8 last, the normal trading of AIMS First Mutual Fund resumed, as the SEC rejected its dividend declaration.
On March 12, the SEC again turned down an appeal from AIMS for approval of its stock dividends and rights share in the interest of market.
The SEC rejection came after at a meeting between the trustees of AIMS and SEC Chairman Zia-ul Haq Khandaker.
Earlier the High Court in a verdict last year allowed close-end mutual funds to raise their fund size by issuing rights and bonus shares subject to approval of the SEC.