BSEC warns companies against dividend payment anomalies

Bangladesh Securities and Exchange Commission (BSEC) Chairman Professor Shibli Rubayat-Ul-Islam said stern actions will be taken against those listed companies that do not pay investors’ dividends properly.

The BSEC chairman gave this warning while speaking at a view exchange meeting as the chief guest organised by the Capital Market Stabilisation Fund (CMSF) on Sunday.

Investors put their funds into stocks in hope of getting dividends. But many companies declare dividends but don’t hand over the payouts to their investors, he said. The amount of current unpaid dividends is around Tk 21 thousand crores in Bangladesh, the BSEC chairman said adding that this huge amount of capital remained idle.

To disburse these unpaid dividend payouts to their payees, the securities regulator formed the CMSF, and so far Tk 1 thousand crore was collected from the companies concerned, Shibli Rubayat-Ul-Islam said.

Speaking at the event, Sheikh Kabir Hossain, president of the Bangladesh Insurance Association said, “We keep hearing that there are unpaid dividends worth Tk 70 crore in the insurance sector. But I don’t know whom that money belongs to.”

“We are trying to return the undistributed dividend to its rightful place. I will extend all possible assistance to CMSF in this regard. But it should be noted that many of our insurance companies are on the verge of bankruptcy.”