Bangladesh Bank Eases Share Transfer and Sale Proceeds Repatriation for Foreign Investors

Bangladesh Bank has made it easier for foreign investors to transfer shares and repatriate the proceeds from sales back to the country. A new master circular has been issued, streamlining the process for non-resident investors in private and public limited companies that are not listed on the stock market.

On 8 March 2026, Bangladesh Bank issued EID Circular No. 01 to announce this master circular, which consolidates and updates previous guidelines issued in 2018 and 2020. The new instructions aim to make the process more predictable, efficient, and transparent for investors while maintaining the necessary regulatory safeguards.

The circular introduces several key reforms:

Increased powers for authorized dealer (AD) banks to handle share transfers and repatriation.

Higher transaction limits, enabling transactions up to BDT 1 crore to be completed based on joint declaration by buyer and seller without independent valuation, and transactions up to BDT 100 crore through prescribed valuation procedures.

Simplified valuation and reporting methods, allowing AD banks to determine transaction prices based on audited financial statements, Net Asset Value (NAV), market value, or discounted cash flow (DCF) methods, with clearer guidance provided.

Defined processing timelines, requiring share transfers to be completed within 45 days and repatriation of sale proceeds within five working days once all required documents are submitted.

Internal committee formation, mandating each AD bank to establish a senior management-led internal committee to review valuations and repatriation requests.

Reporting obligations, requiring AD banks to submit reports to Bangladesh Bank within 14 days of completing transactions.

Previously, to simplify share transfers and repatriation for foreign investors, the Bangladesh Investment Development Authority (BIDA) and Bangladesh Bank jointly formed a high-level Capital Repatriation Committee. Led by BIDA Executive Member Nahian Rahman Rchi, the committee finalised the reform package on 19 November last year.

BIDA Executive Chairman Ashik Chowdhury commented, “A favourable environment for foreign investment is created when investors can proceed confidently at every stage of investment. By reducing approval complexities, facilitating easy repatriation of funds, simplifying valuation and documentation processes, and easing exit procedures, Bangladesh is moving toward that goal. Initiatives like these lay the foundation for a transparent and trustworthy investment environment.”

Under the new guidelines, in many cases AD banks can complete share transfers and repatriation without prior approval from Bangladesh Bank. When contract prices are determined based on audited NAV, AD banks can directly process transactions. These reforms are expected to simplify exit processes for foreign investors and enhance Bangladesh’s overall investment climate.

Signed:
Prashanta Kumar Mondal
Public Relations Officer
Bangladesh Investment Development Authority (BIDA)
Prime Minister’s Office