Regulatory Alerts2018-05-06
Added · Updated
FEID Circular No. 01: Transfer of shares and repatriation of sale proceeds of shares in favor of non-resident in private/public limited companies not listed with stock exchanges
This circular amends the valuation process for repatriating sale proceeds of shares in unlisted public and private limited companies, requiring fair value determination based on the latest audited financial statements as of the Memorandum of Understanding date. It mandates professional valuation reports from licensed Merchant Bankers or Chartered Accountants for transactions exceeding BDT 1.00 million, while exempting such reports if the applied value does not exceed this threshold or if net asset value is higher than the deal value. Authorized Dealers must verify compliance with specific foreign exchange guidelines before forwarding repatriation requests, and target companies or residents must report share transfers to the Foreign Exchange Investment Department within 14 days of the transaction.
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