In a decisive move to bolster foreign direct investment (FDI) and enhance the ease of doing business, the Bangladesh Bank has significantly relaxed the regulations governing the repatriation of capital. Foreign investors seeking to transfer or sell shares in non-listed public and private companies may now repatriate up to 100 crore BDT (approximately £6.6 million) without seeking prior approval from the central bank.
Previously, commercial banks were only authorised to process such transactions up to a ceiling of 10 crore BDT. By increasing this limit tenfold, the central bank aims to dismantle long-standing bureaucratic hurdles that have historically deterred international venturers from exiting or rebalancing their portfolios in Bangladesh.
Streamlining the Repatriation Process
The new directive, issued via an official gazette, empowers authorised dealer (AD) banks to facilitate these transfers independently, provided they adhere to internationally recognised valuation methods. Under the revised framework, if the fair value of shares—determined by an independent valuer—does not exceed the 100 crore BDT threshold, the commercial bank can approve the remittance directly.
Furthermore, the central bank has introduced an even more liberal provision regarding Net Asset Value (NAV). If the transaction value does not exceed the NAV based on the latest audited financial statements, banks may process the repatriation regardless of the total amount involved. For smaller transactions under 1 crore BDT, the requirement for an independent valuation report has been waived entirely, further reducing the cost of compliance for minor stakeholders.
Enhanced Governance and Valuation Standards
To ensure transparency and prevent capital flight, the central bank has mandated the formation of internal committees within commercial banks. These committees will be responsible for scrutinising valuation reports and approving remittances.
Small Transactions: To be overseen by a committee led by the bank’s Chief Financial Officer (CFO).
Large Transactions (up to 100 crore BDT): Must be headed by the Chief Executive Officer (CEO) and include members with professional certifications such as Chartered Financial Analyst (CFA) or equivalent credentials.
The directive also aligns Bangladesh’s valuation practices with global standards, specifically endorsing three primary methodologies:
Net Asset Value (NAV) Method
Market Approach
Discounted Cash Flow (DCF) Method
Key Compliance Timelines and Thresholds
| Feature | New Regulation | Previous Regulation |
| Direct Bank Approval Limit | Up to 100 Crore BDT | Up to 10 Crore BDT |
| NAV-based Repatriation | No limit (if below NAV) | Required BB Approval |
| Independent Valuation | Not required below 1 Crore BDT | Generally required |
| Processing Time | 5 Working Days | Often months |
| Financial Audit Validity | Maximum 6 Months old | Variable |
| Transfer Completion | Within 45 Days | Unspecified |
Efficiency and Reporting
To prevent delays, banks are now required to complete the repatriation within five working days of receiving a valid application. If a case still requires central bank intervention, the bank must forward the application within three working days. Once approved, the entire share transfer must be concluded within 45 days.
This policy shift signals a transition toward a more “market-aligned” economy, where the central bank acts as a regulator of last resort rather than a primary gatekeeper for routine capital movements.