BSEC to take action against companies withholding dividends

The Bangladesh Securities and Exchange Commission (BSEC) has announced it will take action against listed companies that have declared dividends but failed to distribute them among investors.

In an official statement on Wednesday signed by BSEC Director Md Abul Kalam, the capital market regulator disclosed that it has initiated discussions with 22 such companies to address the matter.

The meetings involve top executives of the companies, who have been asked to explain why dividends were announced but not disbursed.

The BSEC has instructed the companies to resolve the ongoing issues preventing them from paying out dividends.

Besides, the commission said punitive measures under securities laws have already begun against firms that have withheld investors' dividends.

Meanwhile, investors continue to suffer amid a five-day losing streak in the stock market. Those who have invested using margin loans are facing the worst impact.

In recent days, investors have staged human chains, protests and symbolic coffin processions in front of brokerage houses in Motijheel, demanding immediate intervention.

Despite these demonstrations, the situation remains unresolved.

Investor associations have confirmed that the commission has called for a meeting with them on Thursday, 29 May.

Following the discussion, the BSEC has assured that steps will be taken to improve the state of the capital market.