Draft of CMSF under verification of the ministry
The government has initiated the process of enacting a new law titled Bangladesh Capital Market Stabilization Fund Act, 2026 to strengthen the country's capital market, enhance transparency, and safeguard investors' interests.
The draft law has been prepared by the Financial Institutions Division and is now undergoing verification and policy review by the Ministry of Finance.
Officials concerned said the proposed legislation aims to transform the Capital Market Stabilization Fund (CMSF) into a more effective and self-sustaining statutory institution by establishing a comprehensive legal framework for managing unclaimed cash dividends, shares, and other financial assets with greater transparency and accountability.
Market stakeholders believe the law will enable the CMSF to function as a modern, centralized digital platform for cash dividend distribution, making the process more efficient, transparent, and investor-friendly.
The proposed framework will also allow investors to obtain tax-challans and tax-deduction certificates for dividends received during a fiscal year from a single platform, significantly simplifying tax compliance.
The draft of the CMSF law proposed proper management of the long-term unclaimed assets, including cash dividends, bonus shares, right shares, and IPO/QIO refunds.
Original owners or their legal heirs will be able to reclaim these assets through a verified claims process.
The law proposes constituting a Board of Directors comprising a chairman, representatives from the Bangladesh Securities and Exchange Commission (BSEC), other financial and market-related institutions, and independent members. A Chief Executive Officer will oversee the fund's day-to-day operations.
The fund's assets will be used to support market stability and protect investors' interests, while investments in approved and secure sectors may be made with the Commission's approval.
The proposed legislation also requires regular auditing, proper accounting, and publication of annual reports to ensure accountability.
In addition, the draft provides for penalties against violations, concealment of information, and misuse of fund assets.
Once enacted, it will repeal the existing Bangladesh Securities and Exchange Commission (Capital Market Stabilization Fund) Rules, 2021.
Md. Wasi Azam, Additional Director of the CMSF Operations Department, told BSS that the proposed law would empower the CMSF to operate as a digital dividend distribution centre, helping strengthen investor confidence and contribute to a more stable capital market.
DHAKA, Aug 02, 2026 (BSS)- The government has initiated the process of enacting a new law titled Bangladesh Capital Market Stabilization Fund Act, 2026 to strengthen the country's capital market, enhance transparency, and safeguard investors' interests.
The draft law has been prepared by the Financial Institutions Division and is now undergoing verification and policy review by the Ministry of Finance.
Officials concerned said the proposed legislation aims to transform the Capital Market Stabilization Fund (CMSF) into a more effective and self-sustaining statutory institution by establishing a comprehensive legal framework for managing unclaimed cash dividends, shares, and other financial assets with greater transparency and accountability.
Market stakeholders believe the law will enable the CMSF to function as a modern, centralized digital platform for cash dividend distribution, making the process more efficient, transparent, and investor-friendly.
The proposed framework will also allow investors to obtain tax-challans and tax-deduction certificates for dividends received during a fiscal year from a single platform, significantly simplifying tax compliance.
The draft of the CMSF law proposed proper management of the long-term unclaimed assets, including cash dividends, bonus shares, right shares, and IPO/QIO refunds.
Original owners or their legal heirs will be able to reclaim these assets through a verified claims process.
The law proposes constituting a Board of Directors comprising a chairman, representatives from the Bangladesh Securities and Exchange Commission (BSEC), other financial and market-related institutions, and independent members. A Chief Executive Officer will oversee the fund's day-to-day operations.
The fund's assets will be used to support market stability and protect investors' interests, while investments in approved and secure sectors may be made with the Commission's approval.
The proposed legislation also requires regular auditing, proper accounting, and publication of annual reports to ensure accountability.
In addition, the draft provides for penalties against violations, concealment of information, and misuse of fund assets.
Once enacted, it will repeal the existing Bangladesh Securities and Exchange Commission (Capital Market Stabilization Fund) Rules, 2021.
Md. Wasi Azam, Additional Director of the CMSF Operations Department, told BSS that the proposed law would empower the CMSF to operate as a digital dividend distribution centre, helping strengthen investor confidence and contribute to a more stable capital market.