Supreme Court upholds market regulator’s order to close down AIMS 1st, Grameen One mutual funds

Closed-ended mutual funds AIMS First Guaranteed and Grameen One have to be closed down in keeping with the regulator’s instructions, according to a Supreme Court order.

Senior Correspondentbdnews24.com
Published : 31 May 2016, 08:04 AM
Updated : 31 May 2016, 08:04 AM

The chief justice-led Appellate bench, on Tuesday, scrapped a High Court verdict, which had declared Bangladesh Security and Exchange Commission’s (BSEC) directive to the operators of the fund, AIMS of Bangladesh.

The order means that the asset management firm now have to liquidate the mutual funds and return the money to its unit holders, said Attorney General Mahbubey Alam.

“The High Court verdict is void as the court has granted BSEC’s appeal,” he told bdnews24.com.

In January 2010, the BSEC, in an executive decision, fixed a 10-year term for closed-ended mutual funds and ordered the closure of those that had crossed that timeframe.

As a result, a BSEC meeting on Jun 29, 2015 decided to close down the AIMS First and Grameen One mutual funds after Dec 31.

One Ali Zaman, a unit holder in both mutual funds, moved the High Court against the regulator’s decision.

On Dec 15, the High Court declared the decision illegal, which prompted the regulator to move the appeal court along with the custodian of the mutual funds, BRAC Bank and the trustee Bangladesh General Insurance Company.

On Tuesday, the apex court gave its final verdict in the case.