LR Global has been dillydallying in handing over management of two mutual funds to a new asset manager, disobeying a court order and disregarding a Bangladesh Securities and Exchange Commission decision.
Six institutions representing the majority unitholders of the two mutual funds — DBH 1st Mutual Fund and Green Delta Mutual Fund — sent a letter to the BSEC on June 22, mentioning the unwillingness of LR Global to hand over the funds.
On December 21 last year, the BSEC ousted LR Global from the two funds as more than 70 per cent of the funds’ unitholders wanted to change the asset manager.
The regulator also approved the appointment of IDLC Asset Management Limited as new asset manager to the two closed-end mutual funds.
However, the asset manager had filed a series of pleas with courts to keep the job but lost the legal battle in the Appellate Division in December, 2019.
Later, it filed an appeal with the BSEC, which was also rejected on February 2 this year.
The BSEC had also asked Bangladesh General Insurance Company, trustee of the two funds, to begin the process of executing its order regarding replacing the funds’ asset manager.
But, the process was stopped as LR Global submitted a stay order it obtained from the High Court in mid-February. The apex court cancelled the stay order on March 12.
‘Hence, the orders removing LR Global as asset manager of the two mutual funds have been fully effective since March 12, and there was no bar to the new asset manager commencing management of the two mutual funds,’ unitholders’ letter reads.
But, LR Global has not yet complied with the order on the pretext that it had not received the certified copy of the Appellate Division’s order, it said.
LR Global was fully informed about the orders of handing over asset management to new manager, it said.