B Mirror Report: The Bangladesh Securities and Exchange Commission (BSEC) has taken a major initiative to reform the Capital Market Stabilization Fund (CMSF) to protect investors’ deposits and ensure greater transparency in fund management.

At a recent meeting, the commission directed the implementation of three key measures aimed at strengthening fund security and reducing risks.

According to BSEC sources, the first step involves transferring the CMSF’s main bank account from a private bank to a state-owned scheduled bank to enhance safety and oversight.

In addition, the commission has decided to withdraw deposits from EXIM Bank. A formal letter will be sent to Bangladesh Bank to facilitate the recovery of these funds.

Another key decision requires the Investment Corporation of Bangladesh to submit a clear timeline or roadmap for returning the funds invested with the institution.

Following recent political changes, the commission identified several irregularities in CMSF operations. To address these issues, work has begun on drafting a new law to provide the fund with a stronger legal and institutional framework.

Under the proposed structure, the CMSF will be managed by a seven-member board led by the BSEC Chairman. The board will include representatives from the Ministry of Finance, the country’s stock exchanges, ICB, and listed companies.

Market insiders believe that diversifying deposits and placing the fund under state-owned banking supervision will significantly reduce risks. Established in 2021 with a corpus of Tk 20,000 crore, the CMSF was designed to support the stock market and address liquidity shortages.

The latest reform initiative is expected to restore investor confidence and contribute to greater stability in the capital market.