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Nobody will be allowed to hold investors’ assets: BSEC Chairman

Staff Correspondent
20 Jul 2023 21:24:11 | Update: 20 Jul 2023 21:24:11
Nobody will be allowed to hold investors’ assets: BSEC Chairman

Bangladesh Securities and Exchange Commission (BSEC) Chairman Professor Shibli Rubayat-Ul-Islam said the investors’ assets will no longer be allowed to be held by others.

Actions would be taken against those listed companies which have failed to transfer their unclaimed dividends to the Capital Market Stabilization Fund (CMSF) in the required time, he added.

The stock regulator chief made this remark at a seminar on ‘Risk Management Framework of CMSF’ held Thursday at the BSEC headquarters in Dhaka. The Capital Market Stabilization Fund organised the seminar.

Already, Tk 225 crore has been invested in the stock market by the CMSF. In the first year, the profit from this fund was Tk 11 crore. The BSEC Chairman hopes more profits will come from the fund this year.

Expressing his hope, the BSEC boss said once the trades of government bonds get momentum, the market turnover will increase from thousands of crores of Tk to much more.

“Confidence crisis is a crucial factor in our market,” the BSEC chief said, adding that they are working to regain investors’ confidence in the market.

Speaking at the seminar, former Bangladesh Bank governor Dr Mohammed Farashuddin said the country’s capital market needs to be strengthened to release scheduled and commercial banks from long-term liabilities.

FBCCI President Md Jashim Uddin said many people have the wrong idea about the stock market. There needs to be more flexibility here. Also, it needs to be promotional, because good works should be known to everyone.

With CMSF Chairman Md Nojibur Rahman in the chair, BSEC Commissioner Dr Shaikh Shamsuddin Ahmed attended the event as a special guest.

The Seminar witnessed a keynote presentation under the title ‘Risk Management Framework of CMSF’ by BOG and RMC Member Dr Sheikh Tanzila Deepty, followed by welcome remarks by RMC Chairman Dr Syed Aminul Karim.

In the seminar, all the guests appreciated the dedication, research work, and unwavering commitment of CMSF to enhancing the understanding of risk factors in the capital market and wished for a more prosperous capital market in Bangladesh.

The Capital Market Stability Fund was formed out of the undistributed dividends of listed companies to increase the money supply in the capital market. This came into effect officially on July 1, 2021.