The Financial Express

Capital Market Stabilisation Fund Rules approved

| Updated: May 08, 2021 11:37:10

Capital Market Stabilisation Fund Rules approved

The securities regulator has approved the Bangladesh Securities and Exchange Commission (Capital Market Stabilisation Fund) Rules, 2021 on receipt of public opinion.

The BSEC earlier formulated the rules aiming to create a market stabilisation fund worth around Tk 210 billion with unclaimed dividends of listed companies.

As per the information of Dhaka Stock Exchange and Chittagong Stock Exchange, 335 listed companies have unclaimed cash dividends worth Tk 9.56 billion and unclaimed or unsettled stock dividends worth Tk 199.86 billion.

According to BSEC officials, many companies use the investors' funds for their own interest. That's why the BSEC has felt the necessity of collecting unclaimed funds for the purpose of controlling the fluctuation in companies' share prices.

The rules, approved on Monday, regarding the market stabilisation fund will come into effect soon through the publication of gazette notification.

On Monday, the securities regulator has extended the timeframe of submitting proposal of raising capital through debt and equity securities by 60 days.

The BSEC took the decision taking into account the Covid-19 pandemic situation and the instructions enforced by the government to contain the Covid infection.

"Besides, the period of enforcing instructions by the government to contain covid-19 infections will be counted as the extended period of submitting financial statements and other information to the commission, bourses and depository organisation," the BSEC said.

At Monday's meeting, the securities regulator has also took the decision of appointing an auditor in Fareast Finance & Investment to conduct thorough audit of the company's financial statements and activities.

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