The Bangladesh Securities and Exchange Commission has formulated draft rules on the formation and execution of capital market stabilisation fund.
According to the draft rules published for public opinions, the main objective and purpose of the fund are to stabilise the capital market ensuring liquidity to the market by way of selling and buying of listed securities, lending and borrowing of listed securities for short selling purpose and settlement of investors’ claims.
A board of governor of 11 members would ensure the purpose.
The fund must be operated by maintaining bank account with any scheduled bank and beneficiary owners account in the name of the Capital Market Stabilisation Fund.
Any amount of cash or stock dividend remained as unpaid or unclaimed or unsettled, including accrued interest income thereon, within three years from the date of declaration or approval must be transferred to the Capital Market Stabilisation Fund of the BSEC, the rules said.
Any cash in the clients’ ledger under consolidated customer account and any securities left in the BO account remaining unclaimed for more than three years must also be transferred by the stockbroker and portfolio managers to the fund.
The fund may receive any grant or loan from the government or any other organisation for the stabilisation as well as development of the capital market, it said.
Any delay in transferring of such unclaimed dividends by the issuer, stockbroker or portfolio manager must be subject to charge default interest at the rate of 2 per cent per month on the amount of the unclaimed dividend.
The fund could make income from buying and selling of securities and from any investments, from securities lending and borrowing activities and other credit facilities, from interest income on bank deposits, and fees and fine received.
If any shareholder or unit holder claims his/her dividends, within 15 days of receiving such claim, the issuer must recommend with detailed information to the chief of operation of the fund paying off such dividend from the fund, and the CO must address the claims within 15 days of such recommendation.
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