The High Court (HC) stayed Wednesday all further procedures regarding the initial public offering (IPO) of Khulna Printing and Packaging Ltd (KPPL), sources in the apex court said.
Started on May 4, 2014, subscription of the company's IPO was set for closure on May 8, 2014 (May 17, 2014 for NRBs), according to its prospectus.
However, in response to a public interest litigation (PIL), the HC also issued a rule upon the authorities concerned to explain as to why they should not be directed to stop further collection of IPO subscription of KPPL.
The finance secretary, the Bangladesh Securities and Exchange Commission (BSEC) chairman, the KPPL managing director and the Sonali Investment Ltd, issue manager of the IPO and a subsidiary of the Sonali Bank Ltd were asked to reply the rule within four weeks, a lawyer said.
The HC bench comprising Justice Mirza Hussain Haider and Justice Muhammad Khurshid Alam Sarkar passed the order and issued the rule upon the PIL filed by Advocate Raihanul Mostafa.
Advocate Md Ziaur Rahman and Advocate Kazi Md Arifur Rahman stood for the petitioner in the court.
The PIL was filed with the HC based on mainly the allegations published in a section of the press that the KPPL moved to collect the money from public issuing IPO in the stock market based on false information about the company.
"The HC bench also directed the KPPL authorities to explain its position about the media allegations within seven days of receiving High Court order," Mr Arifur Rahman told the FE.
The stay order is effective for three months, he added.
Mr Arifur Rahman said that they produced the reports before the court. Despite the allegations, the BSEC did not take measures in this connection, they argued in the court.
