SEC may seek more time for execution of HC verdict on MFs

FE Report

The securities regulator is likely to seek more time on execution of the verdict passed by the High Court allowing mutual funds (MFs) to increase the fund size by issuing bonus and rights shares.

The Supreme Court earlier stayed the HC verdict until November 25, '09.

The Securities and Exchange Commission (SEC) is considering seeking of time as it has not yet received the copy of the verdict. Whether they will file an appeal depends on the merits of the verdict.

"We have not yet got the certified copy and the decision to appeal against the verdict is not final," Mansur Alam, a member of the SEC told the FE.

"We are looking forward to the certified copy and we cannot say for sure whether we will appeal against the verdict or not. It will depend on the merit of the certified copy," Md. Anisuzzaman, another member of the SEC, told the FE.

The High Court allowed mutual funds to raise their size by issuing bonus and rights shares without curbing the securities regulator's absolute power on November 8 last.