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Capital Market Stabilization Fund

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Capital Market Stabilization Fund
Formation2021
HeadquartersDhaka, Bangladesh
Region served
Bangladesh
Official language
Bengali
Websitecmsfbd.org

Capital Market Stabilization Fund (Bengali: ক্যাপিটাল মার্কেট স্ট্যাবিলাইজেশন ফান্ড) is a special fund of the Bangladesh government under the Bangladesh Securities and Exchange Commission to stabilize the security exchanges.[1][2]

History

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Capital Market Stabilization Fund was established in 2021 by the Bangladesh Securities and Exchange Commission.[3][4][5] Md Nojibur Rahman, former principal secretary to Prime Minister Sheikh Hasina was appointed chairman of the Capital Market Stabilization Fund.[6][7] Shyamal Dutta is a member of the board of governors of the Capital Market Stabilization Fund.[8] It started with a 15.45 billion Bangladeshi taka fund.[6] The Daily Star questioned the fund spending millions on meetings and handling of the fund.[6] The fund had held 300 meetings in three years.[9]

The fund is the custodian of undistributed/unclaimed dividends as directed by the Bangladesh Securities and Exchange Commission.[3][10] This was opposed by Bangladesh Bank as it argued the policy was against the Bank Company Act.[11] The dispute between the two regulators saw the drop in the benchmark index of the Dhaka Stock Exchange.[11]

The fund provided 500 million BDT to Golden Jubilee Mutual Fund while 500 more was provided by ICB Asset Management Company and Investment Corporation of Bangladesh.[12] It provides capital to increase the supply of liquidity in the market.[13] After the fall of the Sheikh Hasina led Awami League government, the Salehuddin Ahmed, in charge of the Ministry of Finance of the new interim government, ordered the creation of a committee to review the Capital Market Stabilization Fund.[9][14]

References

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  1. ^ "Our Story". cmsfbd.org. Retrieved 2024-10-07.
  2. ^ "ক্যাপিটাল মার্কেট স্ট্যাবিলাইজেশন ফান্ডের খসড়া বিধিমালা প্রকাশ | অর্থনীতি". Risingbd.com. Retrieved 2024-10-07.
  3. ^ a b "About CMSF". cmsfbd.org. Retrieved 2024-10-07.
  4. ^ "Capital Market Stabilisation Fund". The Financial Express. Retrieved 2024-10-07.
  5. ^ "Stabilisation Fund: A new financing window for stock market". The Business Standard. 2023-04-03. Retrieved 2024-10-07.
  6. ^ a b c Habib, Ahsan (2024-09-24). "To maintain a stock fund, board spent millions on meetings". The Daily Star. Retrieved 2024-10-07.
  7. ^ "For Dhaka, the balancing act is more difficult". The Daily Star. 2022-12-12. Retrieved 2024-10-07.
  8. ^ "Board of Governors". cmsfbd.org. Archived from the original on 18 March 2024. Retrieved 2024-08-19.
  9. ^ a b "Market Stabilization Fund: 300 meetings in 3 years is all it had". The Business Standard. 2024-09-30. Retrieved 2024-10-07.
  10. ^ "Listed firms asked again to deposit undistributed dividends". The Daily Star. 2022-03-24. Retrieved 2024-10-07.
  11. ^ a b "Stocks take a dive". The Daily Star. 2021-09-15. Retrieved 2024-10-07.
  12. ^ "Mutual funds to be an alternative to fixed deposit". The Daily Star. 2022-09-22. Retrieved 2024-10-07.
  13. ^ "Stocks end week on positive note". The Daily Star. 2022-12-16. Retrieved 2024-10-07.
  14. ^ "Committee formed to manage Capital Market Stabilisation Fund effectively". The Daily Star. 2024-10-01. Retrieved 2024-10-07.
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