Jump to content

Capital Market Stabilization Fund

Add links
From Wikipedia, the free encyclopedia
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

[edit]

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.[14][15]

References

[edit]
  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. ^ "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. ^ "Market Stabilization Fund: 300 meetings in 3 years is all it had". The Business Standard. 2024-09-30. Retrieved 2024-10-07.
  15. ^ "Committee formed to manage Capital Market Stabilisation Fund effectively". The Daily Star. 2024-10-01. Retrieved 2024-10-07.
Retrieved from "https://en.wikipedia.org/w/index.php?title=Capital_Market_Stabilization_Fund&oldid=1249856187"