SC stays HC verdict on mutual funds for 14 days
Thursday, 12 November 2009
FE Report
The Chamber Judge of the Supreme Court has suspended the verdict related to mutual funds delivered by High Court for 14 days.
Securities and Exchange Commission (SEC) prayed for permanent stay-order on HC order on allowing mutual funds to issue rights and bonus shares.
However, the Chamber Judge allowed 14 days for the SEC legal adviser to file a regular appeal.
In the Chamber Court Wednesday Justice Mozammel Hossain gave the aforesaid stay order on the basis of the SEC prayer. In a verdict High Court allowed mutual funds to raise their size
by issuing bonus and rights.
"We prayed for a permanent stay order over the verdict of High Court and the court gave a stay order for fourteen days. Now we will file the Civil Petition (CP) for leave to appeal in the Appellate Division," Mahmudul Islam, the lawyer of the SEC told the FE.
Meanwhile Advocate Mustaque Ahmed Chowdhury, a lawyer of Dr M Zahir and Associates, told the FE that big investors of the mutual funds have come out of the market. Now the long procedure for disposal of the writ petition can bring a disaster for small investors.
"We are going to fall in a great danger if the settlement of the disposal in the Supreme Court is delayed," Kamol Ahmed, a general shareholder, told the FE in the court.
On the other hand, in reply to a question related to the sufferings of small investors, an executive director of the SEC said,"Who told the investors to buy the shares of mutual funds at such a high price? They must be prudent and careful about the stock market,"
"We are trying to make them conscious day after day," he added.
The Chamber Judge of the Supreme Court has suspended the verdict related to mutual funds delivered by High Court for 14 days.
Securities and Exchange Commission (SEC) prayed for permanent stay-order on HC order on allowing mutual funds to issue rights and bonus shares.
However, the Chamber Judge allowed 14 days for the SEC legal adviser to file a regular appeal.
In the Chamber Court Wednesday Justice Mozammel Hossain gave the aforesaid stay order on the basis of the SEC prayer. In a verdict High Court allowed mutual funds to raise their size
by issuing bonus and rights.
"We prayed for a permanent stay order over the verdict of High Court and the court gave a stay order for fourteen days. Now we will file the Civil Petition (CP) for leave to appeal in the Appellate Division," Mahmudul Islam, the lawyer of the SEC told the FE.
Meanwhile Advocate Mustaque Ahmed Chowdhury, a lawyer of Dr M Zahir and Associates, told the FE that big investors of the mutual funds have come out of the market. Now the long procedure for disposal of the writ petition can bring a disaster for small investors.
"We are going to fall in a great danger if the settlement of the disposal in the Supreme Court is delayed," Kamol Ahmed, a general shareholder, told the FE in the court.
On the other hand, in reply to a question related to the sufferings of small investors, an executive director of the SEC said,"Who told the investors to buy the shares of mutual funds at such a high price? They must be prudent and careful about the stock market,"
"We are trying to make them conscious day after day," he added.