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Listed companies out of CMSF to face actions

  • Staff Correspondent
  • 16 March, 2022 12:00 AM
  • Print news
Listed companies out of CMSF to face actions

Bangladesh Securities and Exchange Commission (BSEC) will fine the listed companies unless they deposit undisbursed dividends to the Capital Market Stabilisation Fund (CMSF) within March.

“We have given much time. Now we are waiting (for response of the companies). The time will not be extended after this month (March),” BSEC chairman Prof Shibli Rubayat-Ul-Islam told a meeting on Tuesday.

He warned that take strong action will be taken after March 31 against the companies who do no comply.

BSEC chairman also suggested applying possible penalty to the companies who multiply their undisbursed dividends.

CMSF organised the meeting at Hotel Purbani in Dhaka. Bangladesh Association of Publicly Listed Companies (BAPLC) former president Azam J Chowdhury was also present at the meeting.

CMSF chairman Nojibur Rahman presided over the meeting.

BSEC has already sent directive to the listed companies to deposit the undisbursed amount to the CMSF within March 31. Prof Shibli Rubayat-Ul-Islam said that the commission will investigate about the undisbursed dividend since introduction of IPO (initial public offering) of each company. “We will engage international standard auditor to finding out the money. Where the money went, we will indentify. There is no right to develop own asset from the dividend of the investors,” he said.

BSEC chief also assured the investors about sustainability of markets as global economy is going through a setback amid the Russia-Ukraine war.

BSEC commissioner Dr. Shaikh Shamsuddin Ahmed said the stabilisation fund has proven its strength for supporting the capital market as a realistic initiative of the stock market regulator. CMSF consists of unclaimed and undistributed dividends as well as IPO subscription refund warrant. This is being dubbed as a stabilising force in the capital market.