FE Report (Ocorber 06, 2010)
The High Court (HC) has declared illegal the securities regulator's decision to reject the rights and bonus offers of AIMS First Mutual Fund.
A HC division bench comprising Justice Mamnoon Rahman and Justice Syeda Afsar Jahan Tuesday gave this verdict.
The HC also ordered the Securities and Exchange Commission (SEC) to take the decision on the dividend offers of AIMS within 10 days only after it gets the certified copy of the verdict, the regulator's lawyer Probir Neogi said.
"The court asked us to take the decision on the dividend offer of AIMS showing the clear rationale," Mr. Neogi told the FE.
"The HC says the SEC hasn't explained as to why it rejected the dividend offers of AIMS," he said, adding certified copy of the ruling will clear rest of the hurdles.
On hearing the writ petition, Barrister Rokon Uddin Mahmud, Barrister Sheikh Fazle Noor Taposh and Barrister Abul Kalam Azad moved on behalf of the petitioner.
AIMS's managing director Yawer Sayeed said that his fund would now follow what was delivered by the court.
In February this year, AIMS declared 70 per cent stock and 130 per cent right dividends for its unit holders for two years. But the Dhaka Stock Exchange (DSE) halted its trading a day after the announcement by the fund. Its shares were allowed to trade at Tk 22.31 for 14 seconds.
On March 7, the SEC rejected AIMS's declaration, insisting the issue of investors' protection prompted the capital market watchdog to take the seemingly harsh decision.
The SEC also said, "If the dividend declaration of AIMS is approved, 15 other mutual funds, which are eligible to declare right and stock dividends, could seek the same approval from the SEC. That is why, the declaration of AIMS was not granted."
On March 25, Barrister Abul Kalam Azad filed a writ petition challenging the SEC's rejection but he withdrew his petition afterwards.
An investor named Abul Hossain filed another writ petition challenging the SEC's decision in mid April and the HC stayed the SEC's order for six months.
At the same time, the HC asked the SEC to explain why its decision would not be declared illegal.
The High Court (HC) has declared illegal the securities regulator's decision to reject the rights and bonus offers of AIMS First Mutual Fund.
A HC division bench comprising Justice Mamnoon Rahman and Justice Syeda Afsar Jahan Tuesday gave this verdict.
The HC also ordered the Securities and Exchange Commission (SEC) to take the decision on the dividend offers of AIMS within 10 days only after it gets the certified copy of the verdict, the regulator's lawyer Probir Neogi said.
"The court asked us to take the decision on the dividend offer of AIMS showing the clear rationale," Mr. Neogi told the FE.
"The HC says the SEC hasn't explained as to why it rejected the dividend offers of AIMS," he said, adding certified copy of the ruling will clear rest of the hurdles.
On hearing the writ petition, Barrister Rokon Uddin Mahmud, Barrister Sheikh Fazle Noor Taposh and Barrister Abul Kalam Azad moved on behalf of the petitioner.
AIMS's managing director Yawer Sayeed said that his fund would now follow what was delivered by the court.
In February this year, AIMS declared 70 per cent stock and 130 per cent right dividends for its unit holders for two years. But the Dhaka Stock Exchange (DSE) halted its trading a day after the announcement by the fund. Its shares were allowed to trade at Tk 22.31 for 14 seconds.
On March 7, the SEC rejected AIMS's declaration, insisting the issue of investors' protection prompted the capital market watchdog to take the seemingly harsh decision.
The SEC also said, "If the dividend declaration of AIMS is approved, 15 other mutual funds, which are eligible to declare right and stock dividends, could seek the same approval from the SEC. That is why, the declaration of AIMS was not granted."
On March 25, Barrister Abul Kalam Azad filed a writ petition challenging the SEC's rejection but he withdrew his petition afterwards.
An investor named Abul Hossain filed another writ petition challenging the SEC's decision in mid April and the HC stayed the SEC's order for six months.
At the same time, the HC asked the SEC to explain why its decision would not be declared illegal.
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