Only 9.15% of unclaimed dividends transferred

The Capital Market Stabilisation Fund (CMSF) has received Tk 798 crore or 9.15 per cent of the total unclaimed cash and stock dividends from several listed companies and mutual funds.

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 8,716 crore.

Until May 26, the fund received Tk 460.02 crore in cash dividends, and Tk 337.80 crore in stock dividends.

The listed companies have earlier been directed repeatedly to deposit the undistributed dividends in the designated bank accounts of the market stabilisation fund.

The amount so far deposited is much lower than expected, frustrating the Audit and Accounts Management Committee of CMSF, according to a statement.

The fund received the highest amount from the banking sector which deposited Tk 102.77 crore or 22.30 per cent of the total received figure, said CMSF’s Chief of Operation Md Monowar Hossain.

The IT, paper, and printing, and travel and leisure sectors contributed a little, he said.

“Out of total listed companies numbering 359, 60.8 per cent have transferred the undistributed cash dividends and 34.98 per cent transferred stock dividends to CMSF," said Hossain.

Meanwhile, the Bangladesh Securities and Exchange Commission (BSEC) again extended the deadline for depositing unclaimed dividends in the CMSF to June 10.

This is the fourth time the regulator extended the deadline for depositing dividends left undistributed for years.

“The companies that are yet to complete the transfer of cash and shares in line with the provisions of the said rules and commission's directive, are requested to take necessary action to transfer such funds (shares), held in different suspense BO accounts of the issuer companies, to the BO account of CMSF by June 10, 2022,” reads the BSEC order.

Otherwise necessary actions will be taken to bring those BO accounts to the custody of CMSF for smooth settlement of investors' claims, it warned.

Moreover, after the mentioned deadline, shares or stocks held in suspense 80 accounts, matured for transfer to CMSF will be earmarked and held in block module after June to, 2022 until further order of the Commission, it said.

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

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.

On July 7, 2021, the Bangladesh Association of Publicly Listed Companies (BAPLC) sought three months to transfer the unclaimed dividends to the market stabilisation fund after a BSEC order.

On August 22, 2021, the BSEC had approved an 11-member CMSF’s first board of governors, led by Nojibur Rahman, the former principal secretary to the prime minister to manage the market stabilization fund.