Bangladesh Bank Simplifies Foreign Investment Repatriation

Bangladesh Bank has streamlined the process for foreign investors to transfer shares and repatriate proceeds from their sales, making the system more transparent and efficient. A newly issued master circular now facilitates share transfers and the repatriation of sale proceeds for non-resident investors in private and public limited companies that are not listed on the stock exchange.

On 8 March 2026, the central bank issued EID Circular No. 01, consolidating and updating previous guidelines issued in 2018 and 2020. The revised instructions aim to make the process more predictable, efficient, and transparent, while maintaining necessary regulatory safeguards for all parties involved.

Key Reforms Introduced

The new circular includes several important reforms designed to improve the investment environment: the expansion of authorised dealer (AD) banks’ powers, increased transaction limits, simplified valuation and reporting procedures, defined timelines for faster processing, and the establishment of institutional frameworks within banks to review applications for share transfer and repatriation.

Earlier, to facilitate smoother share transfers and repatriation, Bangladesh Investment Development Authority (BIDA) and Bangladesh Bank jointly established a high-level Capital Repatriation Committee. Chaired by BIDA Executive Member Nahian Rahman Rachi, the committee finalised the reform package on 19 November last year.

BIDA Executive Chairman Ashik Chowdhury commented, “A conducive environment for foreign investment is created when investors can proceed with confidence at every stage. By reducing procedural complexity, enabling easy repatriation of sale proceeds, and streamlining valuation and documentation processes, Bangladesh is laying the foundation for a reliable and attractive investment climate.”

Expanded Powers for Authorised Dealers

Under the new guidelines, AD banks can now process share transfers and repatriation without prior approval from Bangladesh Bank in many cases. Transactions up to BDT 1 crore can proceed based on joint declaration by the buyer and seller without independent valuation. For larger transactions up to BDT 100 crore, AD banks may follow the prescribed valuation methods to complete the process independently.

Additionally, where the contract price is based on audited Net Asset Value (NAV), AD banks may execute the transaction directly. The circular retains the existing valuation methods—NAV, market price, and discounted cash flow (DCF)—but provides clearer guidance to ensure consistency and transparency.

Processing Timelines and Compliance

The circular establishes specific timeframes for completion of processes: share transfers must be completed within 45 days and repatriation of sale proceeds within five working days, provided all documentation is in order. Each AD bank is required to set up an internal senior management committee to review valuation and repatriation applications.

Furthermore, all AD banks must submit reports on processed transactions to Bangladesh Bank within 14 days. These measures are expected to simplify the exit process for foreign investors and further enhance Bangladesh’s overall investment climate.

With these reforms, Bangladesh aims to provide foreign investors with greater confidence, streamlined procedures, and a more predictable environment for both investment and divestment.