BSEC makes rules for market stabilisation fund
The fund will be formed with unpaid dividends to provide liquidity support for the capital market
The Bangladesh Securities and Exchange Commission (BSEC) has finalised the rules to form a fund with unpaid dividends aiming to provide liquidity support for the capital market.
The fund will be named Capital Market Stabilisation Fund. On Wednesday, the commission published a notification in this regard.
The BSEC earlier said dividends of Tk21,500 crore had remained unsettled for a long time in many companies.
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It said it wants to stabilise the capital and securities market by providing liquidity by way of buying and selling of listed securities, lending and borrowing of listed securities, and providing short-term loans for capital market intermediaries.
The fund will be 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.
Besides, 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.
It will comprise cash and securities received from the issuer, any person, or a legal entity.
The fund may receive a grant or a loan from the government or any other organisation for the capital market's stabilisation and development.
All receipts other than securities will be deposited to the bank account as maintained and operated under stipulated rules.
A chairman and three members will be appointed by the commission 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.
