B Mirror Report: The Bangladesh Securities and Exchange Commission (BSEC) has initiated a move to introduce a new law for the Capital Market Stabilization Fund (CMSF) to strengthen investor protection and improve the distribution of undistributed dividends.

The proposed Bangladesh Capital Market Stabilization Fund Act, 2026 is intended to replace the existing CMSF Rules, 2021. A draft of the proposed law has been submitted to the Financial Institutions Division of the Ministry of Finance for review and policy consideration.

CMSF currently acts as a custodian of undistributed cash dividends, bonus shares, rights shares and other assets belonging to investors. Under the proposed framework, it could operate as a centralized and digital cash dividend distribution platform, making the process more transparent and efficient.

Investors may also be able to collect tax challans and tax deduction certificates related to dividend income through a single platform.

Established in 2021, CMSF currently holds assets worth around Tk 1,600 crore, largely consisting of undistributed dividends accumulated by listed companies. Since its inception, the fund has transferred around Tk 350 crore in cash and share value to more than 5,000 investors against verified claims.

The fund still holds around Tk 900 crore in cash and Tk 700 crore worth of shares.

The proposed law would also allow CMSF to use part of its interest income and other legitimate earnings for the capital market development, including financial literacy programmes, investor training and capacity-building initiatives.

CMSF has also emerged as an important mechanism for protecting investors in delisted companies.

In the case of Beximco Synthetics Limited, for example, investors are being given an opportunity to receive cash against their shares by transferring them to CMSF.

Mohammad Wasi Azam, additional director of CMSF’s operations department, said the proposed law would enable the fund to play a greater role in the capital market, particularly in centralized dividend distribution and investor education.