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Part of being a champ is acting like a champ. You have to learn how to win and not run away when you lose. Everyone has bad stretches and real successes. Either way, you have to be careful not to lose your confidence or get to confident.
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Guidelines for Capital Market Investment in Bangladesh through BRAC Bank Limited Prepared for Non-Resident Bangladeshis (NRBs) & Foreign Investors

Bangladesh Capital Market

  • o Bangladesh Capital Market consists of the Dhaka Stock Exchange (DSE) & the Chittagong Stock Exchange which were incorporated in 1954 & 1995 respectively.

  • o Both are members of South ASIAN Federation of Exchanges (SAFE), a forum in South Asia to promote the development of securities markets in the region.

  • o The Securities & Exchange Commission (SEC) supervises activities of the bourses and its members.

  • o Automated trading facilities available at both bourses since 1998.

  • o The Central Depository Bangladesh Limited (CDBL) introduced its first electronic book entry in 2004.

  • o Market Intermediaries include 238 members of DSE, 135 members of CSE, 28 Full-Fledged Merchant Banks, 6 Asset Management Companies and 5 Custodians6 (Six) Bangladeshi Companies have been added to Dow Jones Safe-100 Index.

    • Why should you invest in Bangladesh Capital Market?

  • o 100% repatriation of capital, dividend and investment profits.

  • o Reinvestment of repatriable dividend treated as new investment.

  • o No tax on capital gains

  • o 10% of all IPOs are reserved for NRBs.

  • o World’s Bank Investor Protection Ranking for Bangladesh 19th, Pakistan 25th, India 38th & Sri Lanka 70th.

  • o Bangladesh was considered as one of the Goldman Sachs Next 11 countries for a high potential of becoming the world’s largest economies in the 21st century along with the BRICs (Brazil, Russia, India and China).

  • o Easy access to ownership of Infrastructure Development companies, high net worth private banks and companies through Capital Market. Requirements for NRBs & Foreign Investors to invest in Bangladesh

  • o A Foreign Currency (FC) Account is needed for inward and outward remittance.

  • o A Non-resident Investor’s Taka Account (NITA) is required for converting foreign

    • currency into Taka.

  • o All Capital Market investors are required to conduct trading through a Stock Broking Account

  • o maintained with any Stock Broker/Member of the respective Stock Exchange.

  • o In order to trade dematerialized shares listed with the Stock Exchanges, investors must have a Beneficiary Owners (BO) Account with CDBL.

  • o NRB & Foreign Investors may choose to appoint a Custodian to ensure trade execution and safe custody of shares.

    • Why NITA & Stock Broking Accounts

    According to Chapter 14 9Sec-1 of Vol-1) of the Bangladesh Bank’s Foreign Exchange Transaction Regulations, 1947:

  • o Non-resident persons/institutions including NRBs may buy securities in Bangladesh against freely convertible foreign currency remitted from abroad through the banking channel.

  • o Non-resident investors shall open a NITA with any Authorized Dealer (AD) in Bangladesh (i.e. an authorized commercial bank/ bank branch)

  • o Balances in NITA may freely be used to buy Bangladeshi shares and such balance including dividend and sale proceeds is freely remittable abroad in equivalent foreign exchange.

  • o Purchase and sale of shares listed in Bangladesh Stock Exchanges shall be made only through a member /registered broker of the Stock Exchange & purchase of new public issues not yet listed with the stock exchange may be made directly from the issuing company.

  • o No local funds except dividend/interest earning on securities, share sale proceeds & freely

  • o convertible foreign currency remitted from abroad can be credited to NITA.

  • o No loan facilities shall be allowed in NITA.

    • How to invest through a Custodian in Bangladesh?

  • o Open a FC account and NITA with any AD of the Bangladesh Bank.

  • o Open a Custodian Account with any of the SEC registered Securities Custodian.

  • o Your Custodian will open a Stock Broking Account with any member of the Stock Exchange.

  • o Custodian will act as an Operator of your Stock Broking Account.

  • o The Custodian will also open a BO Account with CDBL in order to trade dematerialized shares and act as a POA to your BO Account.

  • o Remit foreign currency in the local FC Account from abroad with instruction to the Custodian for crediting NITA.

  • o The Custodian will arrange payment to the member for crediting Stock Broking Account.

  • o Send securities trading instruction to your Custodian through e-mail or fax.

  • o Receive securities transaction statement through e-mail or fax from your Custodian.

  • o Instruct your Custodian for remitting fund from Bangladesh to you.

  • o You can open FC Account, NITA, BO Account & Custodian Account with the same bank and your Stock Broking Account can be opened at the same place provided the bank has Custodian license, Subsidiary Brokerage & Authorized Dealership for one-stop solution.

    • Why BRAC Bank Limited?

    Being your One-Stop Capital Market service provider, you can avail the following services from BRAC Bank Limited under One-Umbrella:

  • 1. NITA & FC Account opening

  • 2. Stock Broking Account opening through its subsidiary BRAC EPL Stock Brokerage Ltd.

  • 3. BO Account opening

  • 4. Custodian Account opening

    • Document Checklists

    Required documents for NITA and FC A/C

    NRBs

    Foreign Nationals

    Foreign Institutions

    Photocopy of passport

    Bangladeshi Passport

    Foreign Passport

    Passport of the CEO

    Photographs (Account holder)

    4 copies PP size (Attested by introducer)

    4 copies PP size (Attested by introducer)

    4 copies PP size photos of all signatories & authorized persons

    Photographs (Nominee)

    2 copies PP size (Attested by Account holder)

    2 copies PP (Attested by Account holder)

    Not Applicable

    Employee Statement/ Business Document

    Required

    Required

    Not Applicable

    Resident Permit

    Required

    Not Applicable

    Not Applicable

    Memorandum &article of Association, Tax Certificate & Trade License

    Not Applicable

    Not Applicable

    Required

    Approval from the Board of Directors for Investment & Authorized Person, if any

    Not Applicable

    Not Applicable

    Required



    Required documents for Stock Broking and BO A/C

    NRBs

    Foreign Nationals

    Foreign Institutions

    Approval from the Board of Directors for Investment & Authorized Person

    Not Applicable

    Not Applicable

    Required

    Photocopy of Passport

    Bangladeshi passport (with valid visa), Foreign passport (with no obligations seal from Bangladesh Embassy)

    Foreign Passport

    Passport of the Authorized person

    Photographs (Account holder)

    3 copies PP size (Attested by introducer)

    3 copies PP size (Attested by introducer)

    Not Applicable

    Photographs (Authorized Person)

    2 copies (Attested by Account holder)

    2 copies (Attested by Account holder)

    3 copies PP size

    Power of Attorney (Photographs of POA)

    Required (2 copies PP size Attested by Account holder)

    Not required

    Not required



    Photographs (Nominee)

    1 copy PP size (Attested by Account holder)

    1 copy PP size (Attested by Account holder)

    Not Applicable

    Bank A/c number certificate/statement

    FC account

    FC account & NITA

    FC account & NITA

    Memorandum & Article of Association

    Not Applicable

    Not Applicable

    Required

     

    Required documents for Custodian A/C

    NRBs

    Foreign Nationals

    Foreign Institutions

    Approval from the Board of Directors for Investment & Authorized Person

    Not Applicable

    Not Applicable

    Required

    Photocopy of Passport

    Bangladeshi passport

    Foreign Passport

    Passport of the Authorized person

    Photographs (Account holder)

    3 copies pp size

    3 copies pp size

    Not Applicable

    Photographs (Authorized person)

    2 Copies pp size (attested by account holder)

    2 Copies pp size (attested by account holder)

    3 copies pp size (authorized person by board)

    Photographs (Nominee)

    1 copy PP size (Attested by Account holder)

    1 copy PP size (Attested by Account holder)

    Not Applicable

    Bank A/C No. Certificate/Statement

    FC account & NITA

    FC account & NITA

    FC account & NITA

    Memorandum & Article of Association

    Not Applicable

    Not Applicable

    Required

    Work Permit

    Required

    Not Applicable

    Not Applicable



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