Bangladesh Bank has introduced a new directive aimed at attracting more foreign investment in the country’s capital market by simplifying procedures for fund repatriation from share and securities transactions.

In a circular issued on Wednesday, the central bank clarified that foreign investors will no longer be required to obtain a capital gains tax (CGT) certificate when selling shares or securities.

According to the directive, proceeds from the sale of shares by foreign investors must be deposited directly into their Non-Resident Investor’s Taka Account (NITA). Banks will deduct applicable taxes at the time of transferring funds abroad from these accounts.

The new measure is expected to make it easier for foreign investors to repatriate dividends and capital gains to their home countries, while also encouraging reinvestment in Bangladesh’s capital market.

Officials said the requirement for a capital gains tax certificate was not mandatory earlier, although some investors voluntarily obtained it. The Dhaka Stock Exchange (DSE) had recommended clearer guidelines from the central bank on the issue.

Following this recommendation, Bangladesh Bank issued the latest instruction to remove ambiguity and streamline the process.

Market experts believe the simplified procedure will enhance investor confidence and help increase foreign portfolio investment in the stock market.