Capital Market Stabilization Fund disheartened auditors
The Fund’s Audit and Accounts Management Committee (AAMC) has expressed dissatisfaction with the issuing companies as no significant amount of money and shares have been deposited in the Capital Market Stabilization Fund (CMSF). This information has been known from the relevant sources of the fund.
Sources said that despite the huge amount of money and shares of the listed companies’ long undistributed dividends coming into the fund, it has so far accumulated Tk 460 crore and equivalent to Tk 338 crore in the current market value, which is negligible.
At a meeting of the neutral audit committee, the committee’s chief internal resources department (IRD) former additional secretary Abdur Rauf said that if the issuer companies do not transfer money and shares to the CSF fund within the deadline of May 31, 2022, then how can the money and shares be brought to the fund as per the rules by joining hands with Bangladesh Securities and Exchange Commission (BSEC). Overall supervision including monitoring will be done. Other members of the Audit Committee are: AKM Delwar Hossain, Member, Institute of Cost and Management Accountants of Bangladesh (ICMAB), Brigadier General MA Mohi, Bangladesh Navy (Retd) Senior Finance Controller, Shaheda Khanam, Director, Central Counter. Muhammad Tajdikul Islam.
At the meeting, all of them agreed with Abdur Rauf’s statement.
Companies listed on the stock market have huge amounts of money in their long undistributed dividends. The BSEC has set up a special fund called ‘Capital Market Stabilization Fund’ to invest this money together in market development. At the same time, the Capital Market Stabilization Fund Rules, 2021 were published in the form of Gazette.
The fund has a strong 10-member committee to manage it as per its rules. Former Chief Secretary to the Prime Minister and former Chairman of the National Board of Revenue. Najibur Rahman is currently the chairman of this fund.
CMSF is working to protect the interests of investors and build an efficient capital market. CMSF acts as a custodian of cash and stock on behalf of investors obtained by soliciting and distributing cash or stock dividends (dividends) from listed securities issuers, money of unpaid public subscriptions and transfer of unallocated right shares.
Tk 150 crore has been invested in the stabilization fund through the Investment Corporation of Bangladesh (ICB), the country’s state-owned investment institution, under the direction of BSEC, the regulator for capital market stability. This money is invested to ensure liquidity flow in the secondary market of the capital market.
In market stability, CMSF has formed a closed and mutual fund called ‘ICB AMCL CMSF Golden Jubilee Mutual Fund’. The size of this fund is Rs 100 crore, with a face value of Tk 10 per unit. CMSF has invested Tk 50 crore as a sponsor here.
It is also one of the main responsibilities of the fund to settle investor claims. Since its inception, CMSF has received a total of Tk 22,98,060 unresolved claims from investors and settled Tk 21,33,228, which is 93 per cent of the total claims.
CMSF Chairman. Najibur Rahman said, we are working for the stability of the capital market. At the same time, we are working for immediate settlement of claims subject to proper verification to ensure greater interests of cadres and investors. We firmly believe that the activities of CMSF will bring about positive change in the capital market.
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