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Transfer undistributed dividends to CMSF account by June 10, BSEC asks issuers

| Updated: June 12, 2022 16:43:55


Transfer undistributed dividends to CMSF account by June 10, BSEC asks issuers

The securities regular has asked issuer companies to transfer undistributed dividends into the account of Capital Market Stabilisation Fund (CMSF) within June 10.

The Bangladesh Securities and Exchange Commission (BSEC) has delivered the order through the stock exchanges.

"Issuer companies were supposed to complete the job of transferring undistributed dividends within May 31. Now, they will have to transfer the dividend within extended deadline set on June 10," said an official of the CMSF.

He said the suspense accounts containing undistributed dividends will be year-marked if the issuer companies fail to transfer dividends within June 10.

"Those accounts will not be operated without the regulatory permission," the official said.

Following the regulatory order, the stock exchanges have urged the issuer companies to submit detailed information regarding transfer of undistributed dividend within June 12.

After getting information from the issuer companies, the stock exchanges will submit detailed information regarding undistributed dividends to the securities regulator.

According to the CMSF officials, issuer companies have so far transferred undistributed stock dividend worth around Tk 5.0 billion.

And the amount of cash dividend received by the CMSF is around Tk 4.7 billion.

The securities regulator on June 27, 2021 issued rules for the CMSF to help revitalise the market along with settling investors' claims on undistributed/unsettled dividends.

The CMSF comprises undistributed or unsettled dividends, cash, stock and rights.

The objective of forming the CMSF is to enhance liquidity support in the capital market along with settling investors' claims on undistributed dividends.

Investment Corporation of Bangladesh (ICB) has so far received a total of Tk 2.0 billion from the CMSF to invest in the stock market.

The CMSF has so far received applications from investors to settle unresolved claims worth Tk 2.29 million and claims worth above Tk 2.13 million have already been settled.

As sponsor, the CMSF has also contributed Tk 500 million to float a closed-end mutual fund namely ICB AMCL CMSF Golden Jubilee Mutual Fund.

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