The Bangladesh Securities and Exchange Commission (BSEC) has directed to transfer the undistributed or unclaimed cash dividends of listed companies and mutual funds to the Capital Market Stability Fund. Cash dividends must be deposited in the Stability Fund by July 31, 2021. The commission plans to bring more than Tk 20,000 crore of undistributed cash and stock dividends under the Capital Market Stability Fund.
The BSEC on Tuesday (July 8) sent a letter to all listed companies, asset management firms, stock brokers and merchant banks. This information has been known from BSEC sources.
The letter said that if the cash dividend has been allocated or disbursed or unpaid for three years after the declaration or approval or record date, it has to be deposited in the fund of BSEC. An account has been opened at Community Bank’s Gulshan corporate branch in the name of Capital Market Stability Fund to deposit dividend money. Dividend payments and other ancillary information have to be submitted to the Investment Corporation of Bangladesh, the Commission and the Stock Exchange and the Central Depository Bangladesh Limited (CDBL).
In this regard, BSEC Chairman Prof Shibli Rubaiyat-ul-Islam told the media that the undistributed cash and stock dividends would be utilized for the stability of the capital market. Dividend money will be used to reduce the cost of margin loans or to create market. These dividends were long overdue. We have taken initiative to use it for the development of the capital market.
Earlier, the BSEC had framed a rule to utilize the undistributed dividends of listed companies for the stability of the capital market through separate funds.