FE Report
LR Global Bangladesh, an asset management company, has filed a writ petition with the High Court (HC), seeking a direction for continuing its job as asset manager of two listed mutual funds (MFs).
LR Global filed the writ petition on Tuesday as a number of unit holders of the MFs made a proposal recently to change the asset manager of Green Delta Mutual Fund and DBH 1st Mutual Fund.
Advocate Mohammad Arshadur Rouf, the lawyer for the writ petitioner, said the LR Global made complaints to the Bangladesh Securities and Exchange Commission (BSEC) against some people, but no action has yet been taken in this regard.
"We have mentioned this in our writ petition and sought a direction from the HC so that the LR Global can carry on its job as asset manager of the two mutual funds," he added.
At the end of October, over two-thirds of unit holders of the two mutual funds applied to the Bangladesh General Insurance Company (BGIC), the trustee of the MFs, to change the asset manager.
The unit holders also proposed appointing IDLC Asset Management as the new asset manager. The proposal was made in line with the Section 31 of the Securities and Exchange Commission (Mutual Fund) Rules, 2001.
The respondents of the writ petition are BSEC, BSEC executive director (surveillance), BSEC executive director (mutual fund) and the BGIC.
In its writ petition, the LR Global said the application for removal or termination of LR Global is designed by some persons against whom the petitioner raised the allegation of fraudulent activities and made a request to the BSEC to take action in this regard.
But the respondents did not take any steps on the plea and simply sat over the matter, the petitioner said.
Earlier, some unit holders said they made the proposal for changing the asset manager in line with the securities rules.
The unit holders who have applied for changing the asset manager hold 72.50 per cent units of DBH 1st MF and 70.12 per cent units of Green Delta MF.
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