| Capital Market Stabilization Fund | |
| Formation: | 2021 |
| Headquarters: | Dhaka, Bangladesh |
| Region Served: | Bangladesh |
| Language: | Bengali |
Capital Market Stabilization Fund is a special fund of the Bangladesh government under the Bangladesh Securities and Exchange Commission to stabilize the security exchanges.[1] [2]
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. The Daily Star questioned the fund spending millions on meetings and handling of the fund. 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.[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.
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]