LR Global investment in Bdnews24 put on hold

The Bangladesh Securities and Exchange Commission has put the LR Global Bangladesh Ltd's investment in online news portal Bdnews24.com on hold. 

The commission made the decision at an emergency meeting on Sunday, according to a press release signed by Md Saifur Rahman, executive director and spokesperson of the regulatory body.

One of the leading asset management firms in Bangladesh, LR Global recently made a deal to purchase a significant number of Bdnews24 shares and to invest Tk50 crore in the media company.

Toufiq Imroz Khaledi, editor-in-chief of the Bdnews24.com and Reaz Islam, chief executive officer of the LR Global Bangladesh Asset Management Company signed the deal last week.

Sources from the Bangladesh Securities and Exchange Commission on Sunday afternoon said both companies have been ordered to submit all information regarding the investment deal within the next 24 hours.

The commission also directed the Bdnews24.com and LR Global to refrain from any activity regarding the investment. 

The LR Global planned to use money from its six mutual funds to purchase ownership of the Bdnews24. However, existing law dictates that the Bangladesh Securities and Exchange Commission's permission is mandatory for any entity to make equity investments in a non-listed company.

The present regulations also limit the scope for such investments.

The Bangladesh Securities and Exchange Commission has also halted all transactions of Shah Dhaka Stock Exchange trec-holder Mohammad Sagir and Company Ltd for its failure in settlements.

The commission also suspended the brokerage firm's depository participant certificate. However, clients who have beneficiary accounts with the firm will be able to transfer their assets by linking their accounts with other brokers, with support from the Dhaka Stock Exchange and the Central Depository Bangladesh Limited.