CMSF’s first board gets BSEC nod

The Bangladesh Securities and Exchange Commission (BSEC) approved the first board of governors of the newly-formed Capital Market Stabilisation Fund (CMSF) on Sunday.

The stock market regulator approved its first Chairman, Nojibur Rahman, the former principal secretary of the government.

BSEC uncovered Tk 21,000 crore of undistributed and unclaimed dividends by listed companies. It now plans to use the dividends as a safeguard of the capital market and its general investors.

The commission officials said that the primary purpose of the CMSF is to ensure the settlement of investors’ claims against transferred funds of unclaimed or unsettled cash and stock dividends.

Members of the newly-formed board, including the chairman, will hold office a three-year term.

The other nine board members are – Executive Director of BSEC Saifur Rahman, Associate Professor of Dhaka University Dr Tanzila Depty, Editor of Bhorer Kagoj Shamol Dutta, Managing Director of Dhaka Stock Exchange Md Tarique Amin Bhuiyan, Chairman of Chittagong Stock Exchange Asif Ibrahim, Vice Chairman of CDBL AKM Nurul Fazal Bulbul, Independent Director of CCBL Professor Dr Mohammod Tareq, President of Bangladesh Association of Publicly Listed Companies Azam J Chowdhury and AKM Delwar Hossain.  

The fund will be governed by the board of governors of an 11-member team. The chairman will lead the team.

The BSEC will appoint the chairman and three members of the fund while two members nominated by the Dhaka and Chittagong stock exchanges respectively; two members nominated by the CDBL and CCBL respectively; a member nominated by BAPLC; a member from the ICAB or ICMAB or CFA as selected by the Commission; and a Chief of Operation of the fund as an ex-officio member.

Primarily, the size of the fund would be over Tk 21,000 crore, depending on the size of unclaimed dividends of the listed companies.

Listed companies have already initiated moves to transfer unpaid or unclaimed dividends and non-refunded IPO subscription funds to the CMSF fund.

According to BSEC data, more than 75 companies have recently issued notices informing their shareholders to claim the dividends by August 29, 2021, as they have to transfer the fund to the CMSF by August 30.

The regulatory body directed listed companies to transfer the amounts to the CMSF SND A/C No 0010311521301, Community Bank Bangladesh Limited, Gulshan Corporate Branch in Dhaka.

Earlier, on June 27, the BSEC published a gazette notification detailing the relevant rules - the Bangladesh Securities and Exchange Commission (Capital Market Stabilization Fund) Rules, 2021.