BB raises repatriation limit to Tk 100 crore

Foreign investors will now be able to repatriate sale proceeds of up to Tk 100 crore without prior approval from Bangladesh Bank, as the banking regulator has eased the rules.

The central bank issued a circular on Sunday stating that banks can independently process repatriation of sale proceeds of up to Tk 100 crore if the fair value of the transaction is determined by an independent valuer using approved valuation methods.

Previously, banks could approve such transactions only up to Tk 10 crore, with most cases requiring prior approval from the central bank.

Bangladesh Bank has eased the rules for repatriating capital by foreign investors in unlisted companies, aiming to simplify procedures and make the country a more attractive destination for foreign direct investment.

The banking regulator has consolidated and replaced previous instructions on the transfer of shares and repatriation of sale proceeds involving non-resident investors in private and public limited companies that are not listed on stock exchanges.

For transactions where the deal value does not exceed the net asset value (NAV) based on the latest audited financial statements, banks can now process repatriation regardless of the transaction amount, removing a key bottleneck in the process.

Transactions of up to Tk 1 crore will not require any independent valuation report.

The circular also requires banks to form internal committees to assess valuation reports and approve repatriation requests, led by the chief financial officer for smaller deals and the chief executive officer for transactions of up to Tk 100 crore.

To speed up the process, banks must complete repatriation within five working days if no discrepancies are found, while the overall share transfer process must be completed within 45 days of signing the memorandum of understanding or receiving central bank approval.