Staff Correspondent . Mission
The Appellate Division of the Supreme Court on Monday refused to stay immediately a High Court ruling that had stayed the execution of the Securities and Exchange Commission’s directives on share credit and forced sales of shares by investors.
The chamber judge of the Appellate Division, Justice Md Muzammel Hossain, however, sent the matter to the full court for hearing the SEC’s petition staying the HC order on October 7.
The HC bench of Justice Mamnoon Rahman and Justice Syeda Afsar Jahan on September 27 stayed the SEC’s directives asking stock brokers and bankers to go for forced sale of shares by September 30 if any investor failed to adjust margin loans according to the newly introduced net asset-value-based margin loan calculation system.
It also halted the SEC’s directive to follow the last audited earning per share to calculate the price earning ratio for share credit.
The High Court passed the order after hearing a writ petition filed by two investors — M Morshadur Rahman and Mohammad Shahnewaj Jewel — challenging the legality of the directives that the stock market regulators had recently issued to the stock brokers and merchant bankers for applying the ‘margin call requirements’.
The HC bench also issued a rule upon the government and the SEC to explain in four weeks why they should not be directed to take steps to create an investment-friendly environment to keep the market stable.
The SEC, in a petition to the Appellate Division last week, sought stay of the operation of the HC order.
The chamber judge of the Appellate Division, Justice Md Muzammel Hossain, however, sent the matter to the full court for hearing the SEC’s petition staying the HC order on October 7.
The HC bench of Justice Mamnoon Rahman and Justice Syeda Afsar Jahan on September 27 stayed the SEC’s directives asking stock brokers and bankers to go for forced sale of shares by September 30 if any investor failed to adjust margin loans according to the newly introduced net asset-value-based margin loan calculation system.
It also halted the SEC’s directive to follow the last audited earning per share to calculate the price earning ratio for share credit.
The High Court passed the order after hearing a writ petition filed by two investors — M Morshadur Rahman and Mohammad Shahnewaj Jewel — challenging the legality of the directives that the stock market regulators had recently issued to the stock brokers and merchant bankers for applying the ‘margin call requirements’.
The HC bench also issued a rule upon the government and the SEC to explain in four weeks why they should not be directed to take steps to create an investment-friendly environment to keep the market stable.
The SEC, in a petition to the Appellate Division last week, sought stay of the operation of the HC order.
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