SEC urges AG's move on mutual fund case
The stock market regulator yesterday urged Attorney General Mahbubey Alam to take steps to resolve a case on mutual funds.
Securities and Exchange Commission (SEC) Chairman Ziaul Haque Khondker made the plea at a meeting with the attorney general.
In response, Alam assured the SEC boss that initiatives would be taken to fast-track disposal of the case as soon as possible.
The High Court (HC) in August last year stayed SEC's ban on issuance of bonus shares or rights issues for closed-end mutual funds.
The HC had also stayed the dividend declaration by all the mutual fund managers until disposal of the case.
Prior to the stay order, the SEC in July last year approved changes in the mutual fund rules and barred the closed-end mutual funds from offering bonus shares as dividend or offer right issues in a bid to increase their capital base.
The SEC's decision had prompted an investor to file a writ petition with the HC.