Unclaimed dividend deposit deadline extended to Mar 31

The Bangladesh Securities and Exchange Commission (BSEC) has extended the deadline for depositing unclaimed dividends in the Capital Market Stabilisation Fund (CMSF) to March 31.

The stock market regulator issued a directive in this regard on Tuesday and warned of tougher action against listed companies failing to transfer its unclaimed dividends to the CMSF during the period.

In the directive, the BSEC noted that some companies failed to transfer the unclaimed dividends to the fund within January 15, the previous deadline.

Such companies are further instructed to take necessary measures to transfer such funds (cash and shares) to the bank account and BO account of CMSF by March 31.

In failure to abide by the directive, the commission will initiate appropriate measures with securities laws in this regard, including a financial penalty.

The BSEC asked the managing directors of all listed companies, issuers, mutual fund managers, the Dhaka Stock Exchange, the Chittagong Stock Exchange, and other relevant organisations to take necessary measures in this regard

The BSEC had approved the 11-member Capital Market Stabilisation Fund (CMSF)’s first board of governors, led by Nojibur Rahman, the former principal secretary to the prime minister, on July 7 -- a week after it framed the rules in the official gazette.

The amount of the dividends which remained undistributed or unsettled for a long period from the date of declaration has been estimated at over Tk 21,000 crore.

As per the rules, the fund must be operated by maintaining a bank account with any scheduled bank and a beneficiary owner’s account in the name of the stabilisation fund.

Any amount of cash or stock dividend that remains unpaid or unclaimed or unsettled, including accrued interest income thereon, within three years from the date of declaration or approval must be transferred to the fund.

Any cash in the clients’ ledger under the consolidated customer account and any securities left in the BO account remaining unclaimed for more than three years must also be transferred by the stockbroker and portfolio managers to the fund.

Some listed companies have started to transfer the unclaimed dividends and non-refunded IPO subscription funds to the stabilisation fund.