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Capital market stabilisation fund

BSEC approves proposal

FE Report | July 08, 2021 00:00:00

The securities regulator on Wednesday approved the proposal regarding the formation of the board of governance under which the operations of Tk 210 billion capital market stabilisation fund will be conducted.

The approval came Wednesday at a meeting held at the office of the Bangladesh Securities and Exchange Commission (BSEC).

In last week, the securities regulator got gazette notification on formation of the market stabilisation fund.

As per the rules approved for market stabilisation fund, the board of governors of the fund shall be comprised of 11 members, including one chairman nominated by the commission.

The commission will nominate another three members, while the bourses will nominate two members, depository organisation one member and the association of listed companies one member.

One member will also be included from the professionals of chartered accountants or cost and management accountants or chartered secretaries or chartered financial analysts as selected by the commission.

Meanwhile, the BSEC on Tuesday asked all listed companies, asset management companies, brokerage firms and merchant banks to transfer amounts held against unclaimed, undistributed or unsettled dividends or non-refunded public subscription money in cash to the account opened after the name of Capital Market Stabilisation Fund.

The amounts which remained undistributed or unsettled for a period of three years from the date of declaration, approval or record date will have to be sent to the account of market stabilisation fund within July 30.

At Wednesday's meeting, the securities regulator also approved the proposal of Tk 1.5 billion coupon bearing green bond to be issued by PRAN Agro Ltd.

The company will utilise the fund to strengthen its capital base. The offer price of the bond is Tk 1.0 million per unit.

The bond will be issued to different financial institutions, mutual funds, insurers, listed banks and corporations through private placements.

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