Regulatory Alerts2025-01-27
Added
FEID Circular No. 1: Issue of ordinary shares in favor of non-residents in private/public limited companies not listed with stock exchanges
Authorized Dealers (ADs) must scrutinize documents and submit a declaration letter to the Foreign Exchange Investment Department within 14 days for share issuances up to BDT 1.00 million against cash consideration from non-residents in resident companies. The circular mandates that foreign exchange be brought in through banking channels before issuance, ensures the remittance purpose is equity investment, and requires preservation of encashment certificates with specific reporting IDs. Issuance reporting remains required when cumulative issue values exceed BDT 1.00 million per non-resident shareholder or collectively, while applications involving imported capital machineries or discrepancies must be forwarded directly to Bangladesh Bank.