BB bars transfer of unclaimed dividend from banks, NBFIs
The Bangladesh Bank (BB) on Monday told the Bangladesh Securities and Exchange Commission (BSEC) that banks and non-bank financial institutions (NBFI) are not allowed to transfer unclaimed or unsettled dividends to the capital market stabilisation fund as per Bank Company Act, 1991.
The BB made the statement at an online coordination meeting held with the BSEC, Insurance Development and Regulatory Authority, Microcredit Regulatory Authority, Bangladesh Telecommunication Regulatory Commission and Department of Cooperatives. The meeting was presided over by BB governor Fazle Kabir.
The central bank also told the BSEC that the commission could not implement the recent cash dividend policy on banks and NBFIs as rules say that a company can declare cash dividends out of profits of the latest financial year despite having cumulative losses.
The BSEC dividend policy goes against Bank Company Act, 1991, Financial Institution Act, 1993 and international accounting principles.
The BB also urged the BSEC to cancel the implementation of the policy on banks and NBFIs as well as other listed companies for the sake of investors and transparency.
On June 27, the BSEC issued a gazette notification saying that any unpaid or unclaimed or unsettled cash dividend, non-refunded public subscription money, stock dividend or right shares, within three years from the date of declaration or approval or subscription must be transferred to the Capital Market Stabilisation Fund of the BSEC.
The BB also said that the regulators should discuss and examine properly before making any kind of rules.The regulatory agencies have agreed to eliminate any disagreement instantly through communications.
The agencies also discussed about money laundering through using social media and formation of data bank for preserving information of directors of insurance companies and ensuring implementation of regulatory rules without interrupting other regulations.