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Financial markets

Bangladesh Securities and Exchange Commission Directs 44 Companies to Transfer Unclaimed Dividends

Strategic Insights

— 1 min read

Bangladesh Securities and Exchange Commission (BSEC) has instructed 44 listed companies to transfer approximately Tk 1,000 crore in unclaimed dividends to the Capital Market Stabilisation Fund (CMSF) without further delay. The move aims to bolster investor confidence and revive idle capital. The directive follows a recent audit review presented at a high-level meeting held at the BSEC headquarters. The CMSF estimates that around Tk 900 crore of the unclaimed dividends are in the form of bonus shares, while the remaining Tk 100 crore are unpaid cash dividends.

Key Takeaways:

  • The BSEC has instructed 44 listed companies to transfer Tk 1,000 crore in unclaimed dividends to the Capital Market Stabilisation Fund (CMSF).
  • The unclaimed dividends are estimated to be Tk 900 crore in bonus shares and Tk 100 crore in unpaid cash dividends.
  • The CMSF was established in 2021 to manage unutilized investor entitlements, including undistributed dividends, rights share proceeds, and unclaimed IPO refunds.
  • The fund serves a strategic purpose-to reinforce capital market stability by channeling idle assets into productive financial use.
  • Eligible shareholders can claim their entitlements by submitting necessary documentation, upon which the CMSF will process and disburse payments accordingly.
  • Over 100 listed companies collectively owe more than Tk 2,500 crore in undistributed investor funds-including dividends, rights share proceeds, and IPO subscription refunds.
  • The recovery of Tk 1,000 crore from just 44 companies marks a significant step towards enhancing accountability in the capital market.
  • The initiative aims to protect investor rights and contribute to a more stable and transparent financial ecosystem in Bangladesh.

Statistics:

  • Tk 1,000 crore: Amount of unclaimed dividends to be transferred by 44 listed companies to the CMSF.
  • Tk 900 crore: Estimated amount of unclaimed dividends in the form of bonus shares.
  • Tk 100 crore: Estimated amount of unclaimed dividends in the form of unpaid cash dividends.
  • 2021: Year the Capital Market Stabilisation Fund was established.
  • Tk 2,500 crore: Total amount of undistributed investor funds owed by over 100 listed companies.

Sources:

  • "BSEC asks 44 cos to transfer unclaimed dividends" - The New Nation
  • Bangladesh Securities and Exchange Commission (BSEC)
  • Capital Market Stabilisation Fund (CMSF)

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