The government has initiated the process of enacting a new law titled Bangladesh Capital Market Stabilization Fund Act, 2026. This law aims to strengthen the country's capital market, enhance transparency, and safeguard investors' interests. The draft law, prepared by the Financial Institutions Division, is currently undergoing verification and policy review by the Ministry of Finance.
Objectives and Framework
The proposed legislation aims to transform the Capital Market Stabilization Fund (CMSF) into a more effective and self-sustaining statutory institution. It will establish a comprehensive legal framework for managing unclaimed cash dividends, shares, and other financial assets with greater transparency and accountability. The draft law also proposes the creation of a Board of Directors and a Chief Executive Officer to oversee the fund's operations.
Benefits for Investors
Market stakeholders believe the law will enable the CMSF to function as a modern, centralized digital platform for cash dividend distribution. This will make the process more efficient, transparent, and investor-friendly. Investors will be able to obtain tax-challans and tax-deduction certificates for dividends received during a fiscal year from a single platform, simplifying tax compliance.
Management of Unclaimed Assets
The draft law proposes proper management of 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 also requires regular auditing, proper accounting, and publication of annual reports to ensure accountability.
Enforcement and Penalties
The proposed legislation includes provisions 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.
