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Penalties for companies not depositing dividends in CMSF: BSEC Chairman


Published : 20 Jul 2023 07:34 PM

In a bid to strengthen the capital market and ensure investor protection, Bangladesh Securities and Exchange Commission (BSEC) Chairman Professor Shibli Rubaiyat-ul-Islam asserted that companies failing to deposit distributed dividends to the Capital Market Stabilization Fund (CMSF) will face penalties following the audit report. Investors’ assets will be safeguarded, and prompt actions will be taken against defaulters.

The chairman made these remarks as the chief guest at the ‘Risk Management Framework of CMSF’ programme organized by the Capital Market Stabilization Fund (CMSF), with CMSF Chairman and former Chief Secretary to the Prime Minister, Najibur Rahman, presiding over the event.

During the event, Chairman Shibli Rubaiyat-ul-Islam highlighted the significant investment of Tk 225 crore already made in the stock market from the CMSF. In its inaugural year, the fund generated a profit of Tk 11 crores, and he expressed optimism for even greater returns in the coming year. 

He emphasized the need for responsible investment practices and urged companies to fulfill their obligations to investors promptly.

Addressing the audience, Chairman Shibli Rubaiyat-ul-Islam shared the commission’s commitment to establish a stable market with robust regulations. He expressed hope for increased trading of government bonds, foreseeing a significant rise in trading volumes. Speaking about rebuilding investor confidence, he acknowledged the existing challenges in the market and reassured the audience that concerted efforts were underway to restore trust among investors. 

He sought advice from market stakeholders, seeking their valuable input on prioritizing measures to tackle market issues and protect investor assets.

Renowned economist and former governor of Bangladesh Bank, Mohammad Farasuddin, stressed the importance of strengthening the capital market by relieving scheduled banks and commercial banks from long-term liabilities.

Jasim Uddin, President of FBCCI, commented on the need for better investor education, cautioning against treating the capital market as a fixed deposit and underscoring the importance of informed investment decisions.

The event also saw the presence of BSEC Commissioner, Sheikh Shamsuddin Ahmed, as a special guest.

The program aimed to foster a stronger and more secure capital market in Bangladesh, assuring investors of the commission's dedication to market integrity and investor protection.