Race Asset Management urges for re-opening bank account

The bank accounts of Race Asset Management and its funds are said to be frozen despite the court ruling. In this situation, Race Asset Management has applied for re-opening of bank accounts in the interests of the concerned parties and investors.

According to related sources, a shareholder of Race Asset Management claimed to be the bank signatory of mutual funds managed by the company for personal interest. But Race refused to give it as it would be against mutual fund rules.

Angered by this, that shareholder complained to the Bangladesh Securities and Exchange Commission (BSEC). In the light of which the bank account of the company's funds has been seized on the initiative of BSEC. But before that, the court ordered to maintain the status quo.

In light of the shareholder's complaint, BSEC formed an inquiry committee. In addition, the shareholder of Race filed a case in this regard and obtained an ex-parte Interim Order for 30 days from the High Court.

After receiving that order, he quickly spread to Dhaka Stock Exchange, Chittagong Stock Exchange, Bangladesh Securities and Exchange Commission, Bangladesh Bank, BFIU that until he is not made a signatory, all the bank accounts of Bangladesh Race Management should be closed.

In view of this, BSEC has sent instructions to various institutions including Bangladesh Bank and BFIU to suspend bank accounts for 30 days. On the basis of which BFIU suspended the operation of bank account for 30 days.

Then Race Management appealed against the Interim Order to the Supreme Court, the highest court of Bangladesh. After the hearing, the court ordered to maintain the 'Status Quo' before the Interim Order on all the concerned matters and all the parties of the case. By which the company and all the funds under the management of Race will be managed and operated in the same condition as before the complaint.

In this regard, Race Management informed all parties including Dhaka Stock Exchange, Chittagong Stock Exchange, Bangladesh Securities and Exchange Commission, Bangladesh Bank, BFIU, Trustee of the Fund through a letter that exception to the 'Status Quo' is contempt of the Hon'ble Court.

But before the verdict was announced, the BSEC sent a directive to the BFIU to freeze the bank accounts of Race and all funds managed by them. As per instructions BFIU took measures to freeze the bank accounts.

In this situation, in the interests of mutual fund investors, Bangladesh Race Management applied to BSEC, Bangladesh Bank and BIFU to lift all the suspensions imposed on the fund's activities (bank account transactions) and return to the previous status based on an illegal complaint. Currently the matter is under consideration by the regulatory agencies.