LR Global Bangladesh has filed a writ petition with the High Court (HC) seeking a direction for continuing its role as asset manager of two listed mutual funds (MFs).
LR Global filed the writ petition on Tuesday as a number of unit holders of the MFs made a proposal recently to change the asset manager of Green Delta Mutual Fund and DBH 1st Mutual Fund.
Advocate Mohammad Arshadur Rouf, the lawyer for the writ petitioner, said the LR Global made complaints to the Bangladesh Securities and Exchange Commission (BSEC) against some people, but no action has yet been taken in this regard.
At the end of October, over two-thirds of unit holders of the two mutual funds applied to the Bangladesh General Insurance Company (BGIC), the trustee of the MFs, to change the asset manager.
The unit holders also proposed appointing IDLC Asset Management as the new asset manager. The proposal was made in line with the Section 31 of the Securities and Exchange Commission (Mutual Fund) Rules, 2001.
The respondents of the writ petition are BSEC, BSEC executive director (surveillance), BSEC executive director (mutual fund) and the BGIC.
In its writ petition, the LR Global said the application for removal or termination of LR Global is designed by some persons against whom the petitioner raised the allegation of fraudulent activities and made a request to the BSEC to take action in this regard.
But the respondents did not take any steps on the plea and simply sat over the matter, the petitioner said.
The unit holders who have applied for changing the asset manager hold 72.50 percent units of DBH 1st MF and 70.12 percent units of Green Delta MF.
According to the rule 31 (2) of the Bangladesh Securities and Exchange Commission (Mutual Fund) Rules 2001, if owners of over two-thirds of the fund units want, the trustee can replace an asset manager with a prior approval from the BSEC and the trustee have to inform the commission within three working days of the removal.