TIL BDR GHALLEY
Thimphu
The Royal Securities Exchange of Bhutan (RSEB) has commenced the disbursement of Nu. 87.4 million in unclaimed funds to rightful shareholders.
This includes Nu. 77.5 million in unclaimed dividends from 14 listed companies and Nu. 9.9 million in unclaimed share proceeds from five delisted companies.
The disbursement follows the enforcement of the Investor Protection Fund (IPF) Regulations, 2024, implemented by the Corporate Regulatory Authority (CRA).
The regulation, which came into effect on January 10, 2025, aims to enhance investor protection through the transparent and efficient management of unclaimed dividends, share proceeds, and surplus funds in Bhutan’s capital market.
Under Section 11 of the IPF Regulation, the RSEB is mandated to manage and administer the Unclaimed Fund. As stipulated, listed companies must transfer any unclaimed dividends or share proceeds to a designated Unclaimed Fund Account if not claimed within three months from the due date.
“This responsibility has been undertaken to protect shareholders and reinforce public confidence in Bhutan’s capital market,” said RSEB spokesperson Dawa Drakpa.
To support this initiative, RSEB has deployed a dedicated team to verify shareholder records and facilitate disbursements. Once shareholder identities are confirmed, payments are made promptly.
To streamline the process, RSEB recently launched the Unclaimed Dividend System, an online platform enabling shareholders to check and claim their entitlements using their Citizen Identity Card (CID) number.
Since its launch, the platform has enabled the disbursement of approximately Nu. 2.1 million to verified shareholders within just a few days.
However, RSEB acknowledged several challenges in reaching all eligible shareholders.
“Low financial literacy, outdated or missing CID numbers, and incorrect or inactive bank account details—such as dormant accounts or changed account numbers—are some of the key hurdles,” Dawa noted.
He added that RSEB currently lacks detailed demographic profiles of shareholders with unclaimed dividends.
Before transferring funds to RSEB, listed companies made extensive efforts to reach shareholders. These included public announcements, publishing lists of unclaimed dividends on their websites, and making disbursements when shareholders came forward.
RSEB clarified that the funds under its custody are not intended for profit generation. Instead, they are managed in line with the IPF Regulations and allocated toward investor education and awareness through activities such as seminars, workshops, and outreach programs.
Dawa emphasized the risks of holding unclaimed funds for extended periods.
“Prolonged retention poses risks to both shareholders and the broader market. For individuals, these represent unrealized financial assets. For the market, high volumes of unclaimed funds signal the need for better investor engagement, updated data systems, and targeted education.”
According to the IPF Regulations, there is no fixed period after which unclaimed funds become non-redeemable. They remain available for legitimate claims.
However, for financial institutions, unclaimed dividends and share proceeds will be retained in the IPF account for 10 years, after which they will be surrendered to the Royal Monetary Authority (RMA).
To enhance access and improve public awareness, RSEB, in collaboration with the CRA, is planning a nationwide outreach campaign with a focus on grassroots engagement across Dzongkhags.
The success of the Unclaimed Dividend System will be measured by a reduction in unclaimed balances, higher claim rates, and increased public awareness, particularly in rural areas. Additional indicators include system performance, user experience, and regulatory compliance.
RSEB confirmed that no systemic lapses have been found among listed companies in terms of compliance.
“It remains the shareholders’ responsibility to ensure that their personal and banking information is kept up to date,” Dawa emphasized.
To avoid future delays, RSEB is urging all shareholders to verify their records and claim any outstanding entitlements. Regular updates to contact and bank details are strongly recommended.
“These funds rightfully belong to the investors,” said Dawa. “We are committed to maintaining a transparent, secure, and efficient claims process so that every shareholder can reclaim what is rightfully theirs.”
Shareholders can claim their funds from the RSEB office, or Online claims via their Unclaimed Dividend System at https://rsebl.org.bt/unclaimed, using their CID number.
Once verified, funds are transferred to the claimant’s bank account within two to three working days.
“If shareholders do not receive their OTPs, they are advised to contact RSEB to update their phone number,” Dawa added
