Bangladesh Bank (BB) has introduced measures to simplify share transfers and capital repatriation for non-resident investors in private and unlisted public companies, aiming to make the investment exit process faster, more predictable and transparent.
A press release issued on Monday by the central bank confirmed the matter.
Earlier, the new guidelines, issued in a master circular, were finalised on 19 November by a joint committee of BB and the Bangladesh Investment Development Authority (BIDA). They are designed to reduce bureaucratic hurdles for foreign venture capital and equity investors while maintaining essential regulatory safeguards.
A major change is the enhanced authority granted to Authorised Dealer (AD) banks.
Under the updated rules, AD banks can now process most share transfers and repatriation requests without prior approval from the central bank.
The circular introduces tiered processing: transactions up to Tk1 crore can be completed via joint declaration by buyer and seller without an independent valuation, while transactions up to Tk100 crore can be processed directly by AD banks using prescribed valuation methods.
For unlisted entities, AD banks may execute share transfers based on the Net Asset Value (NAV) derived from audited financial statements. This bank-level autonomy is expected to significantly reduce administrative delays for foreign investors.
To ensure faster processing, the circular mandates that share transfer completion must occur within 45 days of receiving all documentation, with actual remittance of proceeds to investors’ home countries finalised within five working days. AD banks must submit formal reports to Bangladesh Bank within 14 days for regulatory oversight.
The circular also clarifies approved valuation methods, including NAV, Market Value, and Discounted Cash Flow (DCF), and requires AD banks to establish internal review committees, led by senior management, to oversee valuations and repatriation requests.
BIDA Executive Member Nahian Rahman Rochi, who led the Capital Repatriation Committee, highlighted that these reforms are aimed at resolving long-standing challenges investors face during the exit stage.
BIDA Executive Chairman Ashik Chowdhury emphasised that creating a favourable investment climate depends on easing both entry and exit processes.
“By simplifying approval steps, valuation processes and remittance procedures, Bangladesh is building a more trustworthy, investor-friendly environment,” he said. “These reforms strengthen our position in the global investment arena and encourage sustainable foreign capital inflows.”
With these changes, Bangladesh is moving towards a more transparent and efficient framework for foreign investment, reducing friction in capital repatriation and fostering confidence in the country’s investment climate.
