More than Nu 64 million in dividends remains unclaimed with the Royal Securities Exchange of Bhutan (RSEB) as of November 2025, despite repeated public notifications and extensive outreach efforts across the country. This persistent backlog underscores deeper systemic challenges within Bhutan’s shareholder registry and highlights the urgent need for sustained reforms in financial literacy, information accuracy, and market accessibility.
According to the RSEB, a total of Nu 100.34 million in unclaimed dividends has been transferred by 11 listed companies over the years. Of this, Nu 35.66 million—just 36 percent—has been successfully claimed. The remainder sits idle, tied up largely due to outdated or incorrect shareholder details that prevent timely verification and payment.
“We are making every possible effort to reach the public, yet the unclaimed amount remains substantial,” an RSEB official said. He explained that SMS notifications have been sent through both mobile service providers—Bhutan Telecom and TashiCell—and announcements continue to be disseminated through the RSEB website and social media channels. However, the response remains limited.
To widen its reach, RSEB has mobilised local government leaders, conducted awareness campaigns in dzongkhags such as Samdrup Jongkhar and Trashiyangtse, and issued targeted public announcements through various platforms. Radio broadcasts, expected to begin shortly, are intended to reach remote communities that may not have regular access to digital communication.
In addition to physical outreach, RSEB has launched an online unclaimed dividend portal that allows shareholders to search for their names and begin the claim process. “Shareholders are encouraged to review their details online and initiate the claim process. If needed, they can visit our office for assistance,” the official added.
The root of the problem, according to the exchange, lies in outdated bank accounts, dormant accounts that no longer receive transfers, incorrect phone numbers, mismatched personal details, and in some cases, the complete absence of a bank account. “Some individuals still have no bank account at all, while others maintain accounts that have been inactive for years,” the official said. Without accurate identification and functional accounts, RSEB cannot release the funds.
To address this, the exchange has undertaken a major effort to update its shareholder database. Records are being cleaned, digitised, and made accessible online. Individuals without bank accounts must either open one or submit an authorization letter from their gewog confirming their identity and status.
Under the IPF Regulation 2024, which came into effect in September 2024, unclaimed dividends from financial institutions will now be held in the Investor Protection Fund (IPF) for ten years. After this period, the funds must be transferred to the Royal Monetary Authority. Previously, companies carried unclaimed dividends as liabilities indefinitely. Importantly, the ten-year limit does not apply to dividends from non-financial companies, which remain claimable at any time.
The operationalisation of the IPF in January 2025 represents a major step in centralising the management of unclaimed dividends. With approval from the Primary Market Regulatory Committee, a portion of the funds may be used for financial literacy and capital-market awareness programmes—without compromising shareholders’ entitlement to their dividends. RSEB is responsible for the daily administration of the fund, while listed companies are required to transfer unclaimed dividends to the designated account if they remain unclaimed for more than three months.
A dedicated RSEB team is now tasked with maintaining the unclaimed dividend database. Although records are cleaned regularly, accounts often become dormant again due to sustained inactivity. “Sometimes there is simply no way to reach the account holder when all contact information is outdated,” an official noted.
Once a shareholder’s identity and bank details are verified, payments are processed immediately. A new tracking system is also being introduced to enhance transparency, allowing shareholders to monitor their claim status and view outstanding balances.
Although the recent reforms mark important progress, financial experts believe that additional measures are needed to significantly reduce unclaimed dividends and strengthen market participation. First, Bhutan needs to invest further in financial literacy, particularly in rural areas where many older shareholders are unaware of their investments or lack basic knowledge of capital market procedures. Awareness campaigns must go beyond one-off visits and adopt sustained community-level programmes in partnership with schools, gewog administrations, banks, and civil society organisations.
Further, RSEB could simplify and digitise the onboarding process for shareholders by enabling e-KYC (electronic Know-Your-Customer) verification, linking citizenship identity cards to shareholder accounts, and integrating data systems with banks. This would reduce errors and minimise the reliance on outdated manual records.
RSEB would benefit from closer collaboration with commercial banks to ensure dormant bank accounts are reactivated more easily and that shareholders receive timely notifications. Automatic alerts regarding dividend deposits, failed transfers, or suspected dormant status could help prevent accumulation of unclaimed funds.
Finally, enhancing the user-friendliness of the online portal, offering multilingual support, and establishing help desks in regional centres would ensure that all citizens—including those with limited digital literacy—can access their information without difficulty.
While RSEB is taking steps to improve transparency and accountability, officials emphasise that clearing unclaimed dividends requires shared responsibility between the regulator and the public. Strengthening Bhutan’s capital market depends not only on better systems, but also on shareholder awareness, accurate information, and active participation.
If these combined efforts continue, Bhutan may be well on its way toward building a more inclusive, transparent, and financially responsible investment culture—where every shareholder receives what they are owed and the capital market grows stronger as a result.
Nidup Lhamo
FromThimphu
