SC stays HC verdict for two weeks

The Supreme Court yesterday stayed for two weeks a High Court verdict that allowed issuance of bonus shares or right shares by closed-end mutual funds.

Chamber judge of the Appellate Division justice Md Muzammel Hossain passed the order upon a petition filed by the Securities and Exchange Commission (SEC).

The judge also asked the SEC to file a regular leave-to-appeal petition with the Supreme Court against the HC verdict within two weeks.

Following a writ petition, the HC on November 8 delivered a verdict allowing issuance of bonus shares or right shares by the closed-end mutual funds.

The HC, however, the same day stayed the operation of the verdict for a week upon a prayer of SEC.

Three investors Ibrahim Akand, Delwar Hossain and Raihana Haque filed the writ petition.

Advocate Mahmudul Islam appeared for SEC while Dr M Zahir stood for the writ petitioners.