SC to hear BSEC appeal against HC verdict on AIMS 1st, Grameen One mutual funds on Mar 29

The Appellate Division has accepted the stock market regulator’s plea to appeal against the High Court verdict that declared illegal its decision to close AIMS First Guaranteed and Grameen One closed-end mutual funds.

A five-strong bench headed by Chief Justice SK Sinha issued a stay order on the High Court verdict and accepted Bangladesh Securities and Exchange Commission’s (BSEC’s) plea for permission to appeal on Thursday.  
 
It set Mar 29 for the hearing, BSEC counsel Deputy Attorney General Ekramul Haque Tutul told bdnews24.com.
 
Tutul said there is no bar on BSEC decision to close the mutual funds for now after the Appellate Division’s order.
 
The High Court declared the BSEC decision illegal on Dec 15 last year, preventing the dissolution of the two funds before Jun 30, 2025.
 
After hearing three pleas of BSEC, BRAC Bank and Bangladesh General Insurance Company on Jan 18, the Appellate Division ordered a status quo on the matter and instructed the petitioners to file a leave-to-appeal plea by Feb 1.
 
The case details show the BSEC in an executive decision on Jan 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 Jun 29 this year decided to close AIMS First and Grameen One mutual funds after Dec 31.
 
But Ali Zaman, one of the unit holders in both mutual funds, challenged the BSEC decision in the High Court on Sep 14.
 
The court issued a rule and a stay order after an initial hearing on Sep 26, and gave the final verdict on Dec 15.