HC's status quo on asset manager of two MFs

The High Court (HC) has directed all parties concerned to maintain status quo regarding the asset manager of Green Delta Mutual Fund and DBH 1st Mutual Fund until January 8, 2020.
LR Global Bangladesh is the asset manager of the two mutual funds, whose investors recently sought to change their asset manager.
The HC ruling came after the LR Global recently filed an appeal for the temporary injunction on the decision of the unit holders.
"As such no action may be taken in relation to the position of LR Global as the AMC (Asset Management Company) of two mutual funds," according to Advocate Mijanur Rahman, the lawyer for LR Global.
At the end of October, over two-thirds of the unit holders of the two mutual funds appealed to the trustee of the funds, Bangladesh General Insurance Company (BGIC), to change their asset manager.
They also urged BGIC to appoint IDLC Asset Management as their new fund manager.
The unit holders who applied for changing the asset manager own 72.50 per cent units of DBH 1st MF and 70.12 per cent units of Green Delta MF.
Earlier, some of these unit holders said they placed the proposal for changing the asset manager in line with the Section 31 of the Securities and Exchange Commission (Mutual Fund) Rules, 2001.

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