Rules have been finalised by the Bangladesh Securities and Exchange Commission (BSEC) to create a fund with unpaid dividends aiming to provide liquidity support for the capital market.
The fund will be named Capital Market Stabilisation Fund. On June 30, the commission published a notification in this regard.
Previously, BSEC stated that dividends of Tk 21,500 crore had remained unsettled for a considerable time in various companies.
The securities regulator wants to stabilise the capital and securities market by providing liquidity by way of purchasing and selling listed securities, lending and borrowing of listed securities, and providing short-term loans for capital market intermediaries.
The fund will be defined as a perpetual one to function as a custodian of undistributed, unclaimed, unsettled dividend (cash or stock), un-allotted rights shares and non-refunded public subscription money in favour of stockholders or investors.
It will have a common seal and management office in Dhaka. It will be governed by the board of governors constituted under the rules.
On top of that, it will be operated by any organisation or the Investment Corporation of Bangladesh under the operation management service contract with the fund’s board of governors by maintaining a bank account.
The fund will contain cash and securities received from the issuer, any person, or a legal entity.
The stabilisation fund might receive a grant or a loan from the government or any other organisation for the capital market’s stabilisation and development.
Except for the securities, all receipts will be deposited to the bank account as maintained and operated under the stipulated rules.
The commission will appoint a chairman and 3 members to govern the fund through the board of governors.
The board will form several management committees for the smooth operation of the fund.
If any shareholder or securities holder claims his cash dividend after the transfer of such dividend to the fund’s bank account, the issuer, after proper verification of the claim, will grant it within 15 days of receiving it.