The Bangladesh Securities and Exchange Commission has warned Swapan Kumar Bala, managing director of the Dhaka Stock Exchange, for not adopting cautious approach in giving his opinion on transfer of units of two mutual funds.
Trust Bank Investment Limited in December last year applied to the BSEC through the bourse to buy 3,94,90,401 units of Trust Bank First Mutual Fund and 90 lakh units of LR Global Bangladesh Mutual Fund One outside the trading system of the DSE.
The bourse forwarded the Trust Bank Investment’s appeal to the BSEC along with its opinions on the issues to the commission saying that the shareholders of the mutual funds should follow the same rules like the listed companies in holding significant number of units as the latest amendment to the mutual fund rules have allowed investors of the funds to vote in the extraordinary general meeting.
As per the Securities and Exchange Commission Rules-2002, any person wants to buy 10 per cent or more shares of a company have to follow the rules that include issuing a public notice in this regard.
On the other hand, another notification issued on March 23, 2010 by the BSEC barred any sponsor-director, officials and other affiliated individuals of a company from buying, sales and transfer of shares two months before the year closing and approval of accounts by the board, the DSE letter also
mentioned the notification with its forwarding letter to the regulator.
Asked about the BSEC warning, a DSE official told New Age on Thursday, ‘We are warned for giving opinion on an ambiguous issue without giving us the opportunity to defend our stance.’
‘Both the Securities and Exchange Commission Rules- 2002 and the BSEC notification mentioned “company”. None of the rules has clarified what will be applicable for the unit holders of mutual funds. That’s why the bourse gave its opinions on the issues,’ he said.
On June 9, the BSEC warned the DSE managing director. It also approved the transfer of units of the mutual funds on the day.
-With New Age input
