SC halts HC order on MF shares

The Supreme Court on Wednesday halted for two weeks the High Court order on mutual funds to issue rights and bonuses shares.

Justice Mohammad Mozammel Hossain, a chamber judge at the Appellate Division, gave the order .

The High Court on Sunday held back its verdict given the same day, which allows mutual funds to issue rights and bonus shares, for seven days.

SEC's lawyer Mahmudul Islam asked for the halt as they would appeal against the verdict, M Zahir, the counsel for the petitioners, said.

Three investors in share markets Ibrahim Akand, Raihana Haque, Delwar Hossain petitioned the HC on Aug 28, 2008, challenging SEC's decision on Mutual Fund.

The SEC on July 22 amended the rule regarding mutual funds where it prohibited mutual funds to increase its paid up capital through issuing rights shares.

The decision also barred mutual fund operators to issue bonus shares as dividend.

Consequently, Mutual Fund faced massive fall in its shares prices, leading to discontent among small investors.