In a decisive move to bolster foreign direct investment (FDI) and enhance the ease of doing business, the Bangladesh Bank has significantly liberalised the regulations governing the repatriation of capital by foreign investors. The central bank has announced that overseas shareholders may now repatriate proceeds from the sale or transfer of shares up to a value of 100 crore BDT without requiring prior regulatory approval.
Previously, commercial banks were only authorised to process such transactions independently up to a ceiling of 10 crore BDT. This tenfold increase is designed to dismantle bureaucratic bottlenecks and signal to the global market that Bangladesh is committed to a more fluid and investor-friendly financial environment.
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Streamlining the Repatriation Process
The new directive applies specifically to non-listed public and private limited companies. By delegating authority to authorised dealer (AD) banks, the central bank aims to reduce the time-consuming paperwork that has historically deterred international venture capitalists and corporate entities.
The policy shift introduces several layers of administrative ease:
Net Asset Value (NAV) Exception: If the transaction value does not exceed the Net Asset Value based on the latest audited financial statements, banks can process the repatriation regardless of the total amount, bypassing the 100 crore BDT cap.
Valuation Waivers: For smaller transactions involving sums of up to 1 crore BDT, the requirement for an independent valuation report has been completely waived.
Methodological Clarity: To ensure transparency, the central bank has aligned its requirements with international valuation standards, accepting three primary methods: Net Asset Value, Market Approach, and Discounted Cash Flow (DCF).
New Regulatory Framework at a Glance
| Feature | Previous Regulation | New Regulation (2026) |
| Independent Bank Approval Limit | Up to 10 crore BDT | Up to 100 crore BDT |
| Valuation Report Requirement | Required for all amounts | Waived for < 1 crore BDT |
| Processing Timeline | Indeterminate/Lengthy | 5 Working Days (at bank level) |
| Audit Recency | Varied | Max 6 months old |
| Governance Structure | Ad-hoc | Mandatory Internal Committee |
Strict Governance and Timelines
While the rules have been relaxed, the central bank has introduced stringent internal governance measures for commercial banks to prevent capital flight or money laundering. Banks must now establish internal committees to oversee these transactions. For transfers up to 100 crore BDT, the committee must be headed by the Chief Executive Officer (CEO) and include professionals with certifications such as CFA or equivalent expertise.
The timeline for these transactions has also been strictly codified. Banks are required to complete the repatriation within five working days if all documentation is in order. Furthermore, the entire share transfer process must be finalised within 45 days of the signing of the Memorandum of Understanding (MoU) or regulatory approval.
A Strategic Pivot for FDI
This liberalisation is part of a broader economic strategy to position Bangladesh as a competitive destination for global capital. By allowing investors a clear and “hassle-free” exit strategy, the government hopes to encourage more “entry” of long-term foreign investment. Market analysts suggest that this transparency in capital repatriation will particularly benefit the burgeoning tech and manufacturing sectors, where agile capital movement is essential.