The government has commenced the legislative process to introduce Bangladesh Capital Market Stabilization Fund Act, 2026, aiming to fortify the national capital market and improve transparency for investors.
The proposed law formulated by Financial Institutions Division, is currently undergoing policy review and verification by the Ministry of Finance, reports BSS.
According to officials, the legislation seeks to transition the Capital Market Stabilization Fund (CMSF) into a self-sustaining statutory body.
This transition will establish a formal legal framework for the accountable management of unclaimed shares, cash dividends, and various other financial assets.
Industry stakeholders suggest that the new law will allow CMSF to operate as a centralised digital hub for dividend distribution. This modernization is expected to streamline the process, making it more efficient and investor friendly.
The framework will enable investors to download tax-deduction certificates and tax-challans for all dividends received within a fiscal year from a single platform, simplifying tax compliance.
The draft legislation outlines procedures for the rigorous management of long-term unclaimed assets, including right shares, bonus shares, IPO/QIO refunds, and cash dividends.
It ensures that the original owners or their legitimate heirs can recover these assets through a verified claims mechanism. Under the proposed Act, the CMSF will be governed by a Board of Directors consisting of a chairman, independent members, and representatives from Bangladesh Securities and Exchange Commission (BSEC) and other financial institutions. A chief executive officer will be appointed to manage daily operations.
The fund’s resources are intended to safeguard investor interests and maintain market stability, with provisions allowing for investments in secure, approved sectors subject to Commission oversight.
To maintain high standards of accountability, the bill mandates regular audits, transparent accounting practices, and the publication of annual reports.
It also includes strict penalties for the misuse of assets, concealment of data, or other violations. Once passed, this Act will supersede Bangladesh Securities and Exchange Commission (Capital Market Stabilization Fund) Rules, 2021.
CMSF Operations Department Additional Director Md Wasi Azam informed BSS that the legislation would empower the fund to serve as a digital centre for dividend distribution, ultimately boosting investor confidence and market equilibrium.
