B Mirror Report: The Bangladesh Securities and Exchange Commission (BSEC) has directed the Capital Market Stabilisation Fund (CMSF) to withdraw Tk225 crore previously lent to the Investment Corporation of Bangladesh (ICB) for investment in the capital market.

According to a letter seen by The Business Standard, the regulator instructed the CMSF to prepare a withdrawal plan and submit it to both the commission and the Financial Institutions Division of the finance ministry.

The move is part of efforts to strengthen fund management and safeguard investors’ money held by the stabilisation fund, officials said.

The CMSF was formed in 2021 under the CMSF Rules 2021 using investors’ unclaimed dividends, undistributed cash and stock dividends, non-refunded public subscription money and unallotted rights shares from listed companies.

Earlier, under its operational mandate, at least 50% of the fund’s cash balance could be used to provide loans to market intermediaries for refinancing margin loans and supporting market liquidity. In line with that policy, the ICB received Tk225 crore from the CMSF in phases and invested the money in the secondary market.

However, the government has now decided to revise the use of the stabilisation fund so that its resources are reserved solely for settling investors’ claims rather than lending to intermediaries.

CMSF Head of Operations Wasi Azam confirmed the development, saying the commission had instructed the fund to encash the investment from ICB to ensure funds remain protected and readily available for repayment to investors.

“We have been instructed to encash the funds to safeguard them so that we can repay investors upon demand,” he said.

Azam added that the CMSF is currently receiving regular interest payments from ICB and has already contacted the institution seeking a withdrawal plan.

He also said the stabilisation fund has opened a new account with Agrani Bank where the encashed funds from ICB will be deposited. According to him, all CMSF deposits held with private banks have already been shifted to state-owned Sonali Bank and Agrani Bank.

The BSEC has also instructed the CMSF to transfer its main accounts to state-owned commercial banks and seek Bangladesh Bank’s support in recovering funds stuck at EXIM Bank.

“We have already sent a letter to Bangladesh Bank regarding the EXIM Bank issue,” Azam said.

He noted that the CMSF has already returned Tk375 crore in cash and shares to investors and currently settles dividend claims worth Tk3 crore to Tk5 crore every month.

Meanwhile, a new law governing the stabilisation fund is being finalised jointly by the finance ministry and the capital market regulator. Under the proposed Capital Market Stabilisation Fund Act 2025, the CMSF will receive statutory status, providing clearer legal provisions regarding its structure, management and oversight.

Officials believe the legal recognition will help strengthen investor confidence and improve long-term market stability.

According to the latest CMSF data, the fund has so far accumulated Tk727 crore in cash and 14.54 crore shares. The market value of those shares stood at Tk939.21 crore as of December 2025.

The fund has already settled Tk329.02 crore in cash and shares in favour of eligible investors, while earning Tk131.53 crore through investments and interest income from bank deposits.