Panel to recommend prudent usage of Stabilisation Fund
FE REPORT | Tuesday, 1 October 2024
The government has formed a high-powered panel to ensure the management of the Capital Market Stabilization Fund (CMSF), sources said.
It has given 10 days to the panel to prepare and submit a report with a set of recommendations.
The Financial Institutions Division (FID) recently issued an official order regarding the matter.
The committee comprises two representatives from the Finance Division and one each from the commerce ministry, Bangladesh Securities and Exchange Commission (BSEC), the Registrar of Joint Stock Companies and Firms (RJSC) and FID.
The team will decide the next course of actions for the CMSF to ensure proper usage of its funds. It will also prepare a report, including suggestions regarding the management of the funds, according to the order.
The CMSF was established in alignment with the Bangladesh Securities and Exchange Commission (Capital Market Stabilization Fund) Rules, 2021 (CMSF Rule 2021).
It acts as a custodian of undistributed cash and stock dividends, non-refunded public subscription money and un-allotted rights shares issued by the Issuer of listed securities.
Cash and stocks with the CMSF will be returned on valid claims of shareholders or Investors at any time.
The Fund disbursed money out of investors' unclaimed dividends to market operator Investment Corporation of Bangladesh (ICB) and sponsored a mutual fund.
The investments are controversial as they do not fall within the purview of the CMSF's operations, said the newly-appointed BSEC Chairman Khondoker Rashed Maqsood earlier.
The Fund also kept deposits with the Community Bank.