Bangladesh Bank has streamlined the process for foreign investors to transfer shares and repatriate proceeds from sales, enhancing transparency and efficiency. The central bank issued a new master circular on 8 March 2026, specifically targeting private and public limited companies that are not listed on the stock exchange. The circular consolidates and updates prior directives issued in 2018 and 2020, creating a more predictable and investor-friendly environment while maintaining necessary regulatory safeguards.
The master circular introduces significant reforms, including empowering Authorised Dealer (AD) banks, increasing transaction limits, simplifying valuation and reporting processes, setting explicit timelines for completion, and establishing institutional mechanisms for reviewing applications related to repatriation. These measures aim to ensure both speed and accountability in executing foreign investment transactions.
Previously, a high-level Capital Repatriation Committee, jointly formed by the Bangladesh Investment Development Authority (BIDA) and Bangladesh Bank, evaluated ways to simplify the process. Chaired by BIDA executive member Nahian Rahman Roci, the committee finalised a reform package on 19 November 2025.
BIDA Executive Chairman Ashiq Chowdhury emphasised, “A robust investment environment is only achieved when investors can operate with confidence at every stage. By reducing approval complexities, enabling smoother repatriation of proceeds, and simplifying documentation and valuation processes, Bangladesh is fostering a transparent and trustworthy investment climate.”
Key features of the new circular include:
| Reform Area | Feature | Limit/Timeline |
|---|---|---|
| AD Bank Authority | Can process transactions without prior Bangladesh Bank approval in many cases | Up to BDT 1 crore via joint declaration; up to BDT 100 crore following prescribed valuation |
| Transaction Processing | Expedited approvals and processing | Share transfers within 45 days; repatriation within 5 working days |
| Valuation Methods | Net Asset Value (NAV), Market Value, Discounted Cash Flow (DCF) | Clearer instructions for each method; NAV-based contract pricing allowed |
| Internal Committee | Senior management reviews applications for evaluation and repatriation | Required at each AD bank |
| Reporting | AD banks must submit transaction reports | Within 14 days to Bangladesh Bank |
The circular allows AD banks greater autonomy. Transactions up to BDT 1 crore can now proceed based on a joint declaration between buyer and seller, without independent valuation. Transactions up to BDT 100 crore can be processed by AD banks following the prescribed valuation methods. Where contract prices are determined using audited financial statements and NAV, AD banks can execute transactions directly, reducing delays.
The circular also establishes strict timelines: share transfers must be completed within 45 days, while repatriation of proceeds must occur within five working days, provided all documentation is in order. Each AD bank must form an internal review committee led by senior management to oversee valuation and repatriation applications. Reports on processed transactions must be submitted to Bangladesh Bank within 14 days, ensuring accountability and oversight.
These reforms are expected to make foreign investment exit processes more efficient, reinforcing Bangladesh’s overall investment climate and positioning the country as an attractive and secure destination for global investors.
Signed,
Prashanta Kumar Mondal
Public Relations Officer
Bangladesh Investment Development Authority (BIDA)
Prime Minister’s Office