HC verdict on AIMS 1st Mutual Fund case Oct 5

The High Court (HC) will deliver its verdict on the writ petition of AIMS First Mutual Fund on October 5 next, lawyers said.

On the other hand, the hearing on the SEC's (Securities and Exchange Commission) appeal against the HC's stay order on the regulator's directive in connection with margin loan formula is likely to take place Sunday next.

On the hearing of AIMs, Barrister Rokon Uddin Mahmud and Barrister Fazle Noor Taposh appeared for the petitioner. Senior Advocate Mahmudul Islam moved on behalf of the SEC.

After completion of hearing, the HC bench comprising Justice Mamnoon Rahman and Justice Syeda Afsar Jahan decided to deliver the verdict on October 5 next.

Earlier, a lawyer on behalf of the investors filed a writ petition challenging the securities regulator's rejection of rights offer announced by the trustee of the Fund.

The trustee of the mutual fund has announced 70 per cent stock dividend for 2007-08 and 2008-09 and a 130 per cent rights entitlement.

The hearing on the SEC's appeal in connection with margin loan formula did not take place as the newly appointed Chief Justice A B M Khairul Haque was busy in taking formal oath as the 19th chief justice of the Supreme Court.

Attorney General Mahbubey Alam has been entrusted with the responsibility to move on behalf of the SEC.

On Monday, two investors filed a writ petition challenging the SEC's directive on the NAV-based margin loan calculation and suspension of netting facilities for non-marginable securities.

Following the writ petition, an HC bench stayed the SEC's directive for a period of three months.

The HC bench also issued a rule upon the government and the SEC to explain within four weeks why they should not be directed to take steps to create an investment-friendly environment and help keep the stock market stable.

The rule also required the government and the regulator to explain why the SEC directive would not be declared illegal.