The government has drafted the Bangladesh Capital Market Stabilization Fund (CMSF) Act, 2026, aiming to strengthen capital market stability, enhance investor protection, and transform the Bangladesh Capital Market Stabilization Fund (CMSF) into a statutory body.

According to officials at the Financial Institutions Division, the proposed law is intended to improve the management of unclaimed cash dividends, shares and other financial assets while ensuring greater transparency, accountability and institutional independence. The draft is currently under review by the Ministry of Finance.

Market stakeholders believe the new law would enable CMSF to function as a modern centralized cash dividend distribution platform, making dividend payments by listed companies more digital, transparent and efficient.

The draft legislation also proposes a unified platform through which investors can obtain tax deduction certificates and records of withholding tax on dividends received during a fiscal year, helping reduce tax-related complications.

Under the proposed law, CMSF will oversee the management of unclaimed cash dividends, bonus shares, rights shares, IPO refunds, Qualified Investor Offer (QIO) funds and other financial assets. Legitimate owners or their legal heirs will be able to reclaim these assets after verification.

The proposed framework includes the formation of a governing board comprising a chairman, representatives from the Bangladesh Securities and Exchange Commission (BSEC), financial and capital market institutions, and independent members. A chief executive officer will oversee the fund’s day-to-day operations.

The fund’s resources may be used to support capital market stability, protect investors’ interests and invest in secure instruments with BSEC approval.

The draft law also introduces provisions on auditing, financial reporting, record keeping and mandatory disclosure, alongside penalties for concealing information, providing misleading data or misusing fund-related assets.

If enacted, the new law will replace the existing Bangladesh Securities and Exchange Commission (Capital Market Stabilization Fund) Rules, 2021.

CMSF Additional Director (Operations) Md. Wasi Azam said the proposed legislation would allow the fund to serve as a modern cash dividend distribution center, making the dividend payment system more centralized, transparent and digital.