The securities regulator will take stern action against the issuers who will fail to deposit investors' unclaimed or undistributed dividends into the capital market stabilisation fund (CMSF) by March 31, 2022.
Chairman of the Bangladesh Securities and Exchange Commission (BSEC) Prof Shibli Rubyat Ul Islam on Tuesday spoke about such action plan taken to settle investors' long-standing claims on undistributed or unclaimed dividends.
"Issuers have to deposit investors' unclaimed or undistributed dividends into the CMSF within March 31," Mr. Islam said.
Mr Islam was addressing a programme titled 'Birthday Celebration of the Father of the Nation & Investors' Claim Settlement' held at a city hotel.
Former principal secretary Md. Nojibur Rahman chaired the programme while immediate-past president of Bangladesh Association of Publicly Listed Companies (BAPLC) Azam J Chowdhury and BSEC commissioner Dr. Shaikh Shamsuddin Ahmed were special guests.
The BSEC chairman Mr. Islam said investors' dividends remained undistributed for long years as the issuers kept the funds with them showing a lot of excuses such as wrong addresses, expiry of investors or untraced recipients.
"The regulator is shocked on the issuers' dillydally in providing information regarding investors' unclaimed or undistributed dividend," said the BSEC chairman.
He said the BSEC will conduct audit as per international standards to determine the amounts of unclaimed or undistributed dividends since the listing of the securities.
"It's a crime if the issuers utilise investors' unclaimed or undistributed dividends. What kind of ethical standard is it?"
Mr. Islam said the amounts of penalties will be several folds of undistributed dividends if such dividends are not transferred into Capital Market Stabilisation Fund (CMSF) within March 31, 2022.
While speaking on market scenario, Mr. Islam said many stock markets across the globe are yet to be stable following Ukraine-Russia war.
"But our stock market has already rebounded overcoming fears and there is nothing to be worried about as the regulator and other authorities concerned are market friendly," Mr. Islam said.
The former principal secretary Md. Nojibur Rahman said they are working relentlessly to mobilise funds into the CMSF setting a target of settlements of long standing claims on undistributed or unclaimed dividends.
"A software will be developed to settle investors' claims digitally. Investors claims will be settled within 30 days," said Mr. Rahman, also a former chairman of revenue board and incumbent chairman of the board of governors of the CMSF.
The former president of the BAPLC Azam J Chowdhury said the decision of forming the CMSF was the best ever as such fund is very important to contain unexpected ups and downs of the market.
"We also worked hard to mobilise funds from the unclaimed or undistributed dividends into the CMSF as many issuers were rigid to transfer such dividends," Mr. Chowdhury said.
He said the government has energy security fund but such fund does not play any role in containing price hikes of energy sector.
"But the investors of the stock market are getting benefits from the CMSF. We need a fund worth around Tk 200 billion to stabilise the market," Mr. Chowdhury said.
The BSEC commissioner Dr. Shaikh Shamsuddin Ahmed said the securities regulator was able to give a shape to the CMSF quickly.
"The CMSF will continue its operations collecting funds from different institutions if its whole fund, generated from unclaimed and undistributed dividends,' is exhausted through settlements of investors' claims," Mr. Ahmed said.
As part of commencing the settlement of investors' claims, the money of unclaimed or undistributed dividends was distributed among five investors at Tuesday's programme.
The officials of the CMSF said a total payment worth Tk 72,000 was ready to distribute among 18 investors including five investors who received payments at Tuesday's programme.
At the programme, two presentations were made on 102nd Birthday of the Father of the Nation and Investors' Claim Settlement.
Earlier, the securities regulator had issued rules for the CMSF through a gazette notification published on June 27, 2021 to help revitalise the capital market.
The objective of the CMSF is to support the country's stock market alongside settling investors' claims on undistributed or unsettled dividends.
The total fund, worth Tk 210 billion, will come from the undistributed or unsettled dividends, namely cash, stock and rights.
According to the BSEC officials, the CMSF has so far received above Tk 4.41 billion against cash dividend and Tk 2.46 billion against stock dividend from the issuers.
