The law passed to bring Tk 20 thousands crore in capital market

Sunbd Desk || Published: 2021-05-03 15:19:24 || Updated: 2021-05-03 15:19:24

Managers of listed companies and mutual funds are lazy about Rs 20,000 crore. The Bangladesh Securities and Exchange Commission (BSEC), the regulator of the capital market, has finalized the policy for investing this lazy money. The commission approved the draft law at its 772nd regular meeting yesterday. It will be published in the form of a gazette very soon.

According to the BSEC, the name of the fund will be ‘Stable Capital Market Fund’. Initially, undistributed dividends of capital market institutions will be added to the fund. By law, these dividends will be brought to the fund from the institutions. At present, various capital market institutions have undistributed dividends of around Tk 20,000 crore. Of which the amount of cash dividend is about three thousand crore rupees. And the market value of bonus dividends is about Tk 17 thousand crore.

According to sources, the name of the fund will be ‘Capital Market Establishment Fund of BSEC’. Initially, its size will be around Tk 21 thousand crore. Its size may be even larger. Because the information of all the companies has not come to the Bangladesh Securities and Exchange Commission (BSEC) yet. On the other hand, the information of merchant banks and brokerage houses is not included here.

According to BSEC sources, the fund is being set up to support the capital market. An 11-member committee will be formed to manage the fund. There may be four representatives from BSEC, one each from Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE), Central Depository Bangladesh Limited (CDBL) and Central Counterparty Bangladesh Limited (CCBL). But it is not final. The BSEC will release the details after the public opinion poll.

BSEC Commissioner Prof. Sheikh Shamsuddin Ahmed told Sunbd that BSEC is working to set up a fund for capital market development. These funds are in small size in different organizations.

He said there would be an 11-member committee to use the funds. There will be several committees under them. They will make a policy and the executives will implement it. There will be such a buying-selling committee. It will be led by the Chief Operating Officer. There will be another audit committee and they will audit regularly. This is how the activities of this fund will continue.

Sunbd/NJ

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