The High Court has declared the decision of the Bangladesh Securities and Exchange Commission (BSEC) to dissolve the AIMS First Guaranteed and Grameen One closed-end mutual funds as ‘illegal’, report agencies.
The bench of Justice Tariq ul Hakim and Justice Farid Ahmed Shibli issued the order yesterday following final hearing on a petition. According to the HC order, the decision of the BSEC to fix 10-year tenure for the closed-end mutual funds and shut them down later would not be applicable to AIMS First and Grameen One.
The case details show that the BSEC had, in an executive decision on January 24, 2010, fixed a 10-year term for closed-end mutual funds and ordered the closure of those that crossed the timeframe.
As a result, a BSEC meeting on Junuary 29 this year decided to close AIMS First and Grameen One mutual funds after December 31.
Earlier in 2014, AIMS of Bangladesh, the asset manager of the MFs, sought BSEC permission to extend tenure of the funds by 10 years which was rejected by the commission.