Six institutions have sought the regulatory intervention for removing an asset management company (AMC) from its job of managing two closed-end mutual funds (MFs).
The institutions have urged the securities regulator to intervene in changing the AMC through a letter sent to the chairman of the Bangladesh Securities and Exchange Commission (BSEC).
"..LR Global has not cooperated in auditing the funds and changing the AM even after their plea for a stay on the BSEC order to change the AMC was turned down by the appellate division," said one of the representatives of six companies.
The institutions which have urged the BSEC to intervene for removing the AMC are BRAC Bank, VIPB Asset Management Company, Edge AMC, Delta Brac Housing Finance Corporation, Delta Life Insurance, and Green Delta Insurance.
The institutions said the AMC namely LR Global has 'denied' to hand over the funds to new AMC saying that the matter is 'sub-judice', despite its stay order was 'vacated'.
According to them, LR Global was supposed to hand over DBH 1st Mutual Fund and Green Delta Mutual Fund to IDLC Asset Management as LR's plea for not changing the AMC was refused by the securities regulator.
"…the orders removing LR Global as asset manager have been fully effective since March 12, 2020 and there is no bar to the AMC, namely IDLC Asset Management, commencing management of two MFs," according to the institutes who sought regulatory intervention in changing the AMC.
They said the orders of appellate division were passed in presence of counsel for LR Global and hence LR Global knows it well.
"Furthermore, a lawyer's certificate communicating the order was also submitted to the LR Global," they said, further adding that their lawyer issued a contempt of court notice on June 17, 2020.
"..the LR Global replied through its lawyer on June 22, 2020 taking the plea that since the matter is sub-judice, there is no scope to hand over charge," said the institutes.
The officials of LR Global could not be reached for their comments in spite of several calls made through cell phone.
Asked, a senior official of the Bangladesh General Insurance Company, trustee of the two MFs, said the COVID-19 pandemics hampered the job of changing the AMC.