MF case hearing takes place again Monday
Thursday, 6 August 2009
FE Report
Further hearing on the much-talked-about mutual fund (MF) case will take place Monday next, as the High Court (HC) bench of Sayed Mahmud Hossain adjourned the court after hearing the arguments from both of the sides Wednesday.
The hearing focuses on whether there is enough evidence to continue the case against changes made in the mutual fund rules by the Securities and Exchange Commission (SEC) a year ago.
Centring over the hearing, prices of the mutual funds fluctuated on the day. Finally, most of the mutual funds ended slightly up, which were much higher than the previous session. However, the investors' attitudes towards the funds were mixed, as they were looking towards the case.
The hearing took place for the first time after three general investors had filed a writ petition against the changes in the mutual fund rules, restricting the fund managers from issuing pre-emptive rights or bonus shares. Eminent lawyer Dr M Jahir along with Barrister Shafiqur Rahman moved for the petitioners.
Following the writ petition, the court also directed all the fund managers of the 17 listed mutual funds, having a total issued paid-up capital of $48 million or Tk 3,316 million, not to declare any dividend until disposal of the rule.
Last year, the SEC decided in principle to review the Mutual Fund Rules 2001, and sought opinions and recommendations from the public. Later, it formally approved the changes in the rules, barring the close-end mutual funds from offering bonus shares as dividend or offer right issues in a bid to increase their capital base.
Further hearing on the much-talked-about mutual fund (MF) case will take place Monday next, as the High Court (HC) bench of Sayed Mahmud Hossain adjourned the court after hearing the arguments from both of the sides Wednesday.
The hearing focuses on whether there is enough evidence to continue the case against changes made in the mutual fund rules by the Securities and Exchange Commission (SEC) a year ago.
Centring over the hearing, prices of the mutual funds fluctuated on the day. Finally, most of the mutual funds ended slightly up, which were much higher than the previous session. However, the investors' attitudes towards the funds were mixed, as they were looking towards the case.
The hearing took place for the first time after three general investors had filed a writ petition against the changes in the mutual fund rules, restricting the fund managers from issuing pre-emptive rights or bonus shares. Eminent lawyer Dr M Jahir along with Barrister Shafiqur Rahman moved for the petitioners.
Following the writ petition, the court also directed all the fund managers of the 17 listed mutual funds, having a total issued paid-up capital of $48 million or Tk 3,316 million, not to declare any dividend until disposal of the rule.
Last year, the SEC decided in principle to review the Mutual Fund Rules 2001, and sought opinions and recommendations from the public. Later, it formally approved the changes in the rules, barring the close-end mutual funds from offering bonus shares as dividend or offer right issues in a bid to increase their capital base.