High Court rejected investment limit in SME

The High Court rejected the appeal made by BSEC on the issue of condition of investment of Tk 30 lakhs in the case of transactions in the SME (Platform of Small Capital Companies) market of the capital market. As a result, there is no more investment limit condition in SME market.

On Monday (January 16), the High Court Division Bench of Justice Farah Mahbub gave the order. It is also directed to hear and dispose of the rule within two months from the date of receipt of copy of the order.

The order said, We have heard the counsel for both sides and perused the impugned orders of the High Court Division and other materials on record. After hearing we are of the view that the ends of justice would be best served if the rule itself is settled by the High Court Division on merits.

Earlier, after filing a writ petition last year (November 13), the High Court wanted to know the reasons for the investment limit in the SME market to the capital market regulatory body Bangladesh Securities and Exchange Commission (BSEC). In view of this, the High Court suspended the condition of investment of Tk 30 lakhs in SMEs for three months.

BSEC appealed to the High Court against the order of the High Court. However, the Appellate Division rejected the company’s appeal.

The investment amount for the latest SME platform investment was determined on September 22 last year. In an order signed by BSEC Chairman Professor Shibli Rubaiyat-ul-Islam, it is said that to be an eligible investor in the SME transaction, there should be a minimum investment of Tk 30 lakhs in the capital market.

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