Companies listed on the stock market usually pay cash dividends in two ways. Some send cash dividends through Bangladesh Electronic Fund Transfer (BEFTIN) but most use courier services. And the issue of distribution of dividend warrants through courier service is basically fraud. Companies are swindling crores of Taka every year through this fraud.
Most investors have a small amount of shares in their portfolio. It can be seen that if one gets 10% cash dividend against 500 shares in one’s hand, the amount of his dividend is 500 rupees. He does not even contact the company for a dividend of Rs 500, nor does he keep inquiries. And if the dividend is 5% or 2-3%, then no one bothers about it for Taka200-300. And take advantage of this opportunity from the company’s MD, CFO, secretary to the share department. Companies collect huge sums of money by combining small warrants.
Only a handful of investors are sent dividend warrants through courier services and the rest are kept to themselves. And the stock exchange pays the compliance by sending the news that the dividend has been distributed. Meanwhile, those who are sent dividend warrants cannot withdraw money from the bank immediately. Companies deliberately show the fund crisis. As can be seen, dividends are paid at the end of the warranty period. In this case too, the bank receives interest for months by withholding the dividend money or it is used for other purposes.
Many investor companies are not treated well when approached for dividends. They are not given the opportunity to go to the AGM and express their views. Certain AGM brokers are hired to block the way to talk. But these investors are the main owners of the company. And in this way, day after day, investors are being deceived about dividends.
But due to lack of monitoring, every company is getting through. Although independent directors are appointed to protect the interests of minority shareholders, they are kept as puppets.
It is important to get out of this situation. It has become time for the Bangladesh Securities and Exchange Commission (BSEC) or the stock exchange authorities to set up a monitoring team in this regard. Strict action must be taken against companies that defraud investors on dividend issues.