Regulatory Alerts2020-08-20
Added · Updated
FEPD Circular No. 33: Investment in Open-End Mutual Fund by Non-resident Investors through NITAs
Balances held in Non-Resident Investor’s Taka Accounts (NITAs) of non-residents may now be used to purchase units of open-end mutual funds as over-the-counter products, subject to authorization from the Bangladesh Securities and Exchange Commission (BSEC). Investments are restricted to funds with BSEC-approved prospectuses, and the Foreign Exchange Investment Department of Bangladesh Bank must be intimated within 14 days of unit issuance. Dividend income may be credited to NITAs after tax deduction, while sale proceeds require Bangladesh Bank approval, with specific valuation or recommendation requirements if underlying unlisted investments exceed 30% of the total fund or if NAV disclosures are irregular. Eligible amounts payable to Non-Resident Bangladeshis may be freely transferred to resident Bangladeshi nationals upon written request, with Bangladesh Bank intimation required only for transfers of sale proceeds.
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