KPPL can now collect IPO subscription

The Supreme Court (SC) on Thursday stayed for two weeks a High Court (HC) order halting collection of initial public offering (IPO) subscription from the stock market by Khulna Printing and Packaging Limited (KPPL), reports UNB.

Chamber Judge of the Appellate Division Justice Hasan Foez Siddique passed the order following a petition.

Following the apex court order, the KPPL can now collect IPO subscription from the share market, said petitioner's lawyer Kazi M Arifur Rahman.

Earlier on Wednesday, the High Court stayed for three months the subscription collection.

Following a writ petition filed in the form of public interest litigation, the HC bench comprising Justice Mirza Hussain Haider and Justice Muhammad Khurshid Alam Sarker also issued a rule asking the authorities concerned to explain as to why order should not be given to stop the subscription collection and why action should not be taken against the subscription collection.

The finance secretary, the Bangladesh Securities and Exchange Commission (BSEC), the KPPL and Sonali Investment had been asked to come with the reply in two weeks.

Lawyer Raihanul Mostafa who filed the writ told the court the KPPL has set a target to collect Tk 400 million from the stock market showing false information. However, the BSEC did not take any action or initiate any probe in this regard, he said.