B Mirror Report: Bangladesh Bank has streamlined share transfers and capital repatriation for non-resident investors in private and unlisted public limited companies, aiming to make the investment exit process faster, more predictable, and transparent, according to a press release today.

The new master circular, finalized on November 19 by a joint committee of the Bangladesh Investment Development Authority (BIDA) and Bangladesh Bank, seeks to facilitate smoother exits for foreign venture capital and equity investors while maintaining necessary regulatory safeguards.

A major feature of the reform is empowering Authorized Dealer (AD) banks to process the majority of share transfer and repatriation requests without prior central bank approval. The circular introduces tiered processing limits to speed up exits:

• Transactions up to Tk 1 crore can be processed through joint declaration by buyer and seller without independent valuation.
• Transactions up to Tk 100 crore can be handled directly by AD banks using prescribed valuation methods.

For unlisted entities, AD banks may now execute transfers based on the Net Asset Value (NAV) from audited financial statements, significantly reducing administrative hurdles for foreign investors.

To ensure predictability, the circular sets a fast-track service schedule: share transfer completion must occur within 45 days of receiving all required documents, and the remittance of proceeds to the investor’s home country must be finalized within 5 working days. AD banks are required to submit formal reports to Bangladesh Bank within 14 days after each transaction.

The circular also clarifies approved asset valuation methods, including NAV, Market Value, and Discounted Cash Flow (DCF). Every AD bank must form an internal review committee led by senior management to examine valuation and repatriation applications for compliance and accuracy.

The reform initiative was led by the “Capital Repatriation Committee” chaired by BIDA Executive Member Nahian Rahman Rochi. BIDA Executive Chairman Ashik Chowdhury said the initiative is designed to instill confidence among foreign investors during both entry and exit stages.

“A favorable investment climate exists when investors can confidently exit as well as enter. By reducing approval complexities, simplifying valuation processes, and easing repatriation, Bangladesh is building a high-trust environment for foreign capital,” he said.

The reforms are expected to boost Bangladesh’s global investment ranking while creating a more transparent and efficient environment for international investors.