LR Global’s Bank Transactions
BSEC probe body gets some powers of civil court
The Bangladesh Securities and Exchange Commission has empowered a committee, formed to investigate LR Global Bangladesh Asset Management Company’s suspicious bank transactions, with some powers of a civil court. The powers include enforcing the attendance of a person and examining him on oath, compelling the producing of documents and issuing commissions for the examination of witnesses.
The commission made the decision on August 12 as the two-member probe committee made little progress in its 30-working day timeframe.
The commission meeting, headed by its chairman M Khairul Hossain, decided for the empowerment of the committee in accordance with Section 21(4) of the Securities and Exchange Ordinance, 1969 and extended the time-frame by 20 more workings days.
The Section 21(4) stipulates, ‘The person holding an enquiry under sub-section (1) shall, for the purpose of such enquiry have the same powers as are vested in a court under the Code of Civil Procedure, 1908, when trying a suit, in respect of the following matters, namely — (a) enforcing the attendance of a person and examining him on oath or affirmation; (b) compelling the production of documents; (c) issuing commissions for the examination of witnesses; and any proceedings before such person shall be deemed to be ‘judicial proceeding’ within the meaning of sections 193 and 228 of the Penal Code.’
LR Global operates several bank accounts for managing funds under its management with the aim of getting increased interest. It has frequently transferred fund from one bank to another before the stipulated date for getting benefit without any reason, a commission report said.
Due to the frequent transactions, most of the mutual funds are being deprived of interest income, it said.
The commission in June formed the two-member probe committee on as the commission found suspicious bank transactions by LR Global.
Earlier, the committee was formed under the Securities and Exchange Commission (Mutual Fund) Rules, 2001.
LR Global manages six mutual funds worth Tk 892 crore — DBH First Mutual Fund of Tk 120 crore, Green Delta Mutual Fund of Tk 150 crore, AIBL First Islamic Mutual Fund of Tk 100 crore, MBL First Mutual Fund of Tk 100 crore, LR Global Bangladesh Mutual Fund One of Tk 321 crore and NCCBL Mutual Fund-1 of Tk 110 crore — all of whom were listed with the capital market.
The commission is also investigating a number of allegations of anomalies of LR Global including investment of Tk 46.39 crore in non-listed companies from the mutual funds run by LR Global in violation of rules.
-With New Age input
