Regulators progress on ‘legal question’ over CMSF formation: Chairman
We are working to implement the mandate with which the fund has been formed, he said
There has been significant progress over questions raised by the central bank on the legal framework regarding the formation of the Capital Market Stabilization Fund (CMSF), the fund's Chairman Md Nojibur Rahman said on Sunday.
He said the two regulators – the Bangladesh Bank and the Bangladesh Securities and Exchange Commission (BSEC) – are negotiating among themselves.
"They will decide on this. However, we are working to implement the mandate with which the fund has been formed," Nojibur, also a former principal secretary to the prime minister, added while speaking at the "CMJF Talk" organised by the Capital Market Journalists' Forum.
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Held at CMJF's Paltan office in the capital, its President Ziaur Rahman presided over the event, which was conducted by its General Secretary Abu Ali.
Md Nojibur Rahman elaborated on CMSF formation, shareholders' claim settlement, and future plans for undistributed dividends.
In a meeting, the Bangladesh Bank had earlier raised questions about the legal framework of the fund.
Replying to a question to this end, he said the Bangladesh Bank was concerned that no depositors' funds should go to the CMSF, and the BSEC was concerned that no funds of shareholders should lie anywhere.
"No one is obstructing the CMSF in the legal framework it is working with. All are cooperating in a cooperative spirit. And we are also working with the mandate set by the commission. We are apprising the commission of our various plans on a regular basis," he added.
Nojibur said the size of CMSF now stands at around Tk1,270 crore, including the cash dividend of Tk560 crore and the bonus and right shares of Tk710 crore. Tk225 crore has been provided to the Investment Corporation of Bangladesh for investment in the capital market, which has been invested in the capital market.
He said in fiscal 2021-22, excluding expenses, there was a profit of about Tk11.90 crore.
He said to date, 1,170 investors have been provided with their due dividend and shares through the CMSF. Among them, about 800 investors got cash and 370 got shares.
