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  • Last Update : 03:41 pm

Chamber judge freezes LR Global stay order

  • Published at 10:23 pm December 1st, 2019
High Court-HC-court
File photo of High Court building Dhaka Tribune

The chamber judge, Hasan Foez Siddique, passed the order yesterday and fixed Thursday for hearing at the Appellate Division bench

An Appellate Division chamber judge has frozen a stay order till Thursday on a replacement appeal by two mutual funds to change their asset manager, LR Global Bangladesh. 

The chamber judge, Hasan Foez Siddique, passed the order yesterday and fixed Thursday for hearing at the Appellate Division bench. 

Mustafizur Rahman Khan, lawyer of IDLC Asset Management Ltd, a unitholder of the mutual funds, told Dhaka Tribune that the seven institutional investors holding units in the Green Delta Mutual Fund and the DBH First Mutual Fund had filed the petition against the High Court Division stay order. 

“So the Bangladesh Secularities and Exchange Commission (BSEC) has no bar to changing the asset manager of both funds as per the unitholders’ wish,” he said.

On November 7, the LR Global Bangladesh Asset Management Company Ltd managed to obtain an injunction order from the High Court regarding continuation as the asset manager of two listed mutual funds.

Before the HC stay order, majority unitholders of the funds did not want LR Global as their asset manager following a dispute over liquidation of funds.

Unitholders of the funds sent letters to LR Global trustee Bangladesh General Insurance Company (BGIC) in this regard.

They want to appoint IDLC Asset Management Limited as the new asset manager of the funds with immediate effect, according to the letters.

Around 72.50% unitholders of DBH First Fund and 70.12% of Green Delta Mutual Fund called for changing the asset manager.

As per mutual fund rules 2001 of the Bangladesh Securities and Exchange Commission (BSEC), if two-thirds of unitholders of a mutual fund want to cancel an asset manager, the trustee has to cancel the asset manager.

Among the unitholders, BRAC Bank, NCC Bank, EBL, Agrani Equity, Delta Life, Green Delta Insurance, IDLC Investments, IDLC AML, VIPB Asset Management, Edge Asset Management, Vanguard Asset Management, Delta Brac Housing Finance, Delta Life Insurance and Asian Tiger Capital Partners Asset Management applied for the change. 

Despite several attempts over mobile phone, LR Global chief executive officer Reaz Islam could not be reached for comments.