Muhammad Ayub Ali :
In a move aimed at bolstering investor confidence and reviving idle capital, the Bangladesh Securities and Exchange Commission (BSEC) has instructed 44 listed companies to transfer approximately Tk 1,000 crore in unclaimed dividends to the Capital Market Stabilisation Fund (CMSF) without further delay.
The directive follows a recent audit review presented at a high-level meeting held on 10 this month at the BSEC headquarters in Agargaon.
The meeting was attended by senior representatives from the concerned listed companies, officials of the CMSF,
and members of the BSEC, and focused on discrepancies in dividend disbursement and compliance with existing regulations.
According to CMSF estimates, around Tk 900 crore of the unclaimed dividends are in the form of bonus shares, while the remaining Tk 100 crore are unpaid cash dividends. These funds have remained dormant for extended periods due to outdated shareholder records, unlinked or inactive bank accounts, and other procedural issues that have hindered the rightful disbursement to beneficiaries.
The CMSF, established in 2021 under the BSEC (Capital Market Stabilisation Fund) Rules, was created to manage unutilised investor entitlements, including undistributed dividends, rights share proceeds, and unclaimed IPO refunds.
The fund also serves a strategic purpose-to reinforce capital market stability by channelling these idle assets into productive financial use, including improving liquidity and restoring investor trust.
Commenting on the issue, Abu Ahmed, Chairman of the Investment Corporation of Bangladesh (ICB), told The New Nation that unclaimed dividends often arise due to factors such as shareholder deaths, overseas residency, or difficulty in tracing beneficiaries. Under current BSEC regulations, such unclaimed amounts are required to be transferred to the CMSF to ensure transparency and regulatory compliance.
The audit findings revealed significant irregularities among several high-profile firms, including British American Tobacco (BAT), Square Pharmaceuticals, Apex Footwear, Padma Oil, Bangladesh Submarine Cables, Singer Bangladesh, Olympic Industries, and Heidelberg Cement.
In many cases, the companies failed to open dedicated bank accounts for unclaimed dividends as mandated by law. Alarmingly, some firms reportedly used these funds as part of their working capital-a direct breach of securities regulations.
BSEC rules stipulate that declared cash dividends must be distributed within 30 days of approval at a company’s Annual General Meeting (AGM). If unclaimed, the dividends must be transferred to a separate bank account and subsequently deposited into the CMSF within 90 days. However, the audit found that several companies had either disputed the BSEC’s liability assessments or made only partial payments, prompting the regulator to reaffirm its position.
CMSF officials stressed that these funds remain fully recoverable by investors. Eligible shareholders can claim their entitlements by submitting the necessary documentation, upon which the CMSF will process and disburse payments accordingly.
The situation highlights a wider issue across the capital market. According to the latest data from the CMSF, over 100 listed companies collectively owe more than Tk 2,500 crore in undistributed investor funds-including dividends, rights share proceeds, and IPO subscription refunds.
The recovery of Tk 1,000 crore from just 44 companies marks a significant step towards enhancing accountability in the capital market. Regulators believe the initiative will not only protect investor rights but also contribute to a more stable and transparent financial ecosystem in Bangladesh.
