Investing in Bangladesh

The formal capital market in Bangladesh is supervised by Bangladesh’s securities regulator (Bangladesh Securities and Exchange Commission (BSEC)). Shares, debt securities, corporate bonds, and investment funds are offered through the Dhaka stock exchange (Dhaka Stock Exchange (DSE)), the Chittagong stock exchange (Chittagong Stock Exchange (CSE)), and authorised market participants. Alternative investment funds (Alternative Investment Funds (AIF)) invest, for example, in private equity or venture capital. Open-end mutual funds (Open-End Mutual Funds (OMF)) are another type of fund. The corporate bond market is limited, while government bonds play a larger role in fixed-income investing. Bangladesh’s central bank (Bangladesh Bank) is responsible for government securities and foreign exchange. Government securities include Treasury Bills with maturities of 91, 182, or 364 days and, occasionally, 14-day T-Bills. Government treasury bonds (Bangladesh Government Treasury Bonds (BGTB)) typically have maturities of 2, 5, 10, 15, or 20 years. Floating-rate treasury bonds (Floating-Rate Treasury Bonds (FRTB)) have maturities of approximately 3 years. Bangladesh government investment sukuk (Bangladesh Government Investment Sukuk (BGIS)) supplement this offering. National savings certificates, also known as Sanchayapatra (Sanchayapatra), and Sanchayabonds are not exchange-traded and are intended for retail investors. Investments in shares, funds, or corporate bonds normally require a registered broker and a Beneficiary Owner Depository Account (BO account) with Bangladesh’s central securities depository (Central Depository Bangladesh (CDBL)) or a Depository Participant (DP). A designated BO account clearly identifies the securities’ owner; a pooled account should be used only on the basis of an expressly verified agreement. The DP may not mix customer assets with its own holdings. When there is account activity, the account holder receives a statement at least monthly; without activity, at least quarterly. Possible depository services include balance inquiries, SMS or email notifications, dividend crediting, transfers, dematerialisation, rematerialisation, blocking, and pledging and releasing securities. Online opening of a BO account typically requires a mobile phone number or email address, an NID or Smart Card, bank evidence, a photograph, and a signature. Non-resident Bangladeshis and other foreign investors use a non-resident investor taka account (Non-Resident Investor Taka Account (NITA)) with an authorised dealer bank (Authorised Dealer Bank (AD)) for permitted portfolio investments. Funding is made through a normal banking channel from freely convertible foreign currency. Permitted investments include listed securities, BGTB, AIF, and OMF, among others. According to the reviewed information, Bangladesh Bank’s FPI portal does not state a general maximum limit; AD, KYC, and tax checks remain required. Income and sale proceeds may be repatriated in foreign currency through the NITA under the applicable tax rules. Prior Bangladesh Bank approval is generally not required for exchange-based portfolio investments, but settlement through the AD is required. Retail investors can buy government bonds through a scheduled bank or a primary dealer (Primary Dealer (PD)). According to the reviewed information, auctions require a minimum bid of 100,000 taka or a multiple thereof; investors must check the current Bangladesh Bank calendar. Secondary trading may take place through banks, PDs, non-bank financial institutions, or exchanges. Treasury Bills are issued below par and repaid at par on maturity. BGTB usually pay semi-annual coupons and the principal at maturity. Prices and yields are determined by market or auction conditions. A suitable investment depends on the objective, time horizon, liquidity needs, and risk tolerance. Allocating investments across asset classes, sectors, and maturities can reduce concentration risk. For shares, relevant factors include exchange listing, prospectus, annual report, corporate governance, earnings and cash-flow performance, dividend history, valuation, and trading spread. For funds and AIF, the management company, trustee, custodian, investment mandate, net asset value, fees, and exit and lock-up periods should be reviewed. None of these investments guarantees a return. Real return equals nominal return minus inflation, taxes, and fees. For every purchase or sale, the broker issues a purchase or sale note and a contract note. The contract note legally confirms the trade and should show the price, fees, and settlement in a traceable way. Investors must pay on time when buying, deliver the securities when selling, maintain correct KYC and account details, and pay the agreed brokerage. They are entitled to traceable price and brokerage records, prompt settlement, genuine securities, and complaint channels. Complaints should first go to the broker, then to the exchange, and then to the BSEC complaints channel (BSEC Complaint Box). The BSEC Investor Guide states a maximum brokerage of 1 percent of the trading value. The actual rate charged may differ and should be confirmed in writing together with exchange, depository, tax, bank, and foreign-exchange costs. CDBL generally does not charge BO holders directly for all depository costs; the DP may pass on fees. After the 2025 fee change, the annual BO account maintenance fee is 150 taka. Non-payment may result in blocking or closure under the applicable CDBL rules. For certain taxpayers other than companies, funds, and trusts, the tax on capital gains from listed securities is 15 percent under the reviewed version of the Income Tax Act 2023. Dividends, coupons, and repatriations for non-resident investors also depend on status, instrument, and any applicable tax treaty; the NBR (National Board of Revenue (NBR)) and the AD provide current information. Risks include price losses, high volatility, issuer default, interest-rate and maturity risks, inflation, exchange-rate losses between taka and foreign currency, low liquidity, wide spreads, concentration, poor corporate governance, and broker, depository, cyber, and fraud risks. Government bonds are also subject to interest-rate, inflation, liquidity, and exchange-rate risks despite having a government issuer. Corporate bonds and AIF may be particularly difficult to sell; lock-up periods and exit rules should therefore be checked before purchase. Virtual assets and virtual currencies are not recognised as currency or investment forms by Bangladesh Bank. Trading, exchanging, transferring, and brokering such transactions are prohibited under Foreign Exchange Circular 24 (FE Circular 24) of 15 September 2022. The information reflects the researched status as of 5 September 2026.