Thukten Zangpo

The Royal Securities Exchange of Bhutan Limited (RSEBL) has reported a staggering Nu 61.84 million in unclaimed dividends from 15 of the 18 listed companies in the country. 

The unclaimed dividends have accumulated over time.

Bhutan Insurance Limited leads the list with highest unclaimed dividend at Nu 16.64 million, closely followed by Druk PNB Bank Limited, which has Nu 16.02 million in unclaimed dividends. 

T-Bank Limited and Royal Insurance Corporation of Bhutan Limited hold unclaimed dividends worth Nu 7.93 million and Nu 6.62 million respectively. 

Two companies, Sherza Ventures and Dungsum Polymers Limited, have not declared dividends since its inception.  

An RSEBL official attributed the unclaimed dividends primarily to a lack of financial literacy. “Many shareholders are unaware of the dividends they are entitled to from their investments.”

While companies deposit dividends directly into shareholders’ bank accounts, a significant number of shareholders either do not have bank accounts or have incomplete or inactive account information, which complicates the disbursement process.

“The dividend will remain with the company, and as shareholder information is updated with RSEBL, the accrued dividend amount will be promptly deposited into the shareholder’s bank account by the company,” the RSEBL official said. 

According to the RSEBL, the companies handle the direct disbursement of dividends to shareholders, and RSEBL does not retain any unclaimed dividend amounts. 

However, RSEBL provides the companies with an updated shareholder list to facilitate the dividend payment process.

The Office of the Registrar of Companies, in collaboration with RSEBL, is in the process of drafting a regulation known as the Investor Protection Fund, which aims to address all issues related to unclaimed dividends. 

This regulation is expected to be implemented next year.

To facilitate shareholders to claim dividends, the RSEBL is actively implementing various financial literacy initiatives. 

The RSEBL official said that these initiatives include hosting monthly online sessions on Fridays, creating and sharing educational videos and podcasts across social media platforms, and conducting on-site awareness programmes. 

Moreover, the RSEBL is emphasising the importance of keeping bank account details current to ensure timely receipt of dividends. The organisation is directly reaching out to shareholders via telecommunications and is posting lists of those with incomplete information on social media to encourage updates.

Moreover, to highlight the importance of maintaining updated bank account details and other essential information for the timely receipt of dividends, the RSEBL, in collaboration with the companies and brokers, is directly reaching out to shareholders over the phone. 

“Additionally, we are uploading lists of shareholders with incomplete information on our social media platforms to encourage updates,” the official said.