CMSF receives Tk 798cr from 359 listed companies, mutual funds

The Capital Market Stabilisation Fund (CMSF) has received Tk 798 crore in unclaimed cash and stock dividends from 359 listed companies and mutual funds (MF).

Until May 26, the newly-formed fund received Tk 460.02 crore in cash dividends, or 57.66 per cent of the total, from 239 companies and mutual funds, and Tk 337.80 crore in stock dividends, or 42.34 per cent, from the rest 120 companies.

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.

To stabilize the country’s capital market, CMSF has so far injected Tk 200 crore through the Investment Corporation of Bangladesh (ICB). 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 CMSF.

Meanwhile, Bangladesh Securities and Exchange Commission (BSEC) Chairman Professor Shibli Rubayat-Ul-Islam has warned of tougher action against the listed companies if they fail to transfer the unclaimed dividends to CMSF by Tuesday (May 31).

This is, however, the third time BSEC has extended the deadline for depositing dividends. The last two deadlines expired on January 15 and on March 31.

Earlier this month, the Audit and Accounts Management Committee of CMSF had expressed frustration over the listed companies’ failure to deposit money and shares in the fund at the expected level.

“We won’t extend the deadline anymore,” said Shibli, while addressing the “BSEC-BAPLC-CMSF Tripartite Dialogue” in Dhaka on Thursday night.

“CMSF was formed to protect the investors’ interests and it is successfully doing so. I advise the listed companies to transfer investors’ undistributed and unclaimed cash and stock dividends to CMSF before May 31. Dividends will be audited from the time they are listed on the stock exchanges,” he added.

Presenting the keynote presentation there, CMSF’s Chief of Operation Md Monowar Hossain said they received the highest amount — Tk 102.77 crore or 22.30 per cent of the total — in cash dividends from the banking sector.

CMSF also received a small contribution from the IT, paper and printing, travel and leisure sectors.

He also said that apart from the 359 issuer companies that have deposited the dividends, there are 223 more that are still non-compliant. “Out of total issuer companies, 60.8 per cent have transferred undistributed cash dividends to the CMSF and 34.98 per cent transferred stock dividends.”

Anis Ud Dowla, president of the Bangladesh Association of Publicly Listed Companies (BAPLC), and BSEC Commissioner Dr Shaikh Shamsuddin Ahmed were also present at the event chaired by CMSF Chairman Md Nojibur Rahman and attended by representatives of various issuer companies, banks and financial institutions.

BAPLC President Anis encouraged the issuer companies to make the deposits before the deadline. “The BSEC has been kind enough to grant us several extensions,” he added.

On June 27, 2021, BSEC issued a gazette notification saying that all asset management companies, stockbrokers, merchant banks and listed companies — including companies operating in the over-the-counter market — must transfer unclaimed, undistributed or unsettled dividends or non-refunded public subscription money held for more than three years to CMSF.

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