The government has proposed reforms to simplify share transfer and capital repatriation procedures, part of a broader effort to strengthen foreign investor confidence and improve Bangladesh’s business environment.
According to the FY2026-27 budget proposal, foreign investors will no longer need a valuation report for share transfer transactions worth up to Tk1 crore. In addition, foreign shareholders can repatriate proceeds from transactions valued up to Tk100 crore without prior approval from Bangladesh Bank.
The measures aim to reduce regulatory hurdles that investors face when entering or exiting investments in Bangladesh. Previously, foreign investors selling shares and transferring funds abroad had to comply with multiple documentation requirements and approval procedures, which market participants said often increased costs and delayed investment decisions.
Officials said the relaxation will make the investment process more efficient and improve the ease of doing business by allowing faster transaction execution. For higher-value deals, the government proposed using licensed valuation firms to determine share prices, providing a reliable and independent assessment while maintaining investor protection.
The budget proposals arrive as Bangladesh seeks to attract greater foreign direct investment (FDI) to support industrial expansion, job creation, and economic growth. Economists note that a predictable and investor-friendly exit mechanism is a key factor international investors consider for long-term commitments.
Alongside these changes, the government announced financial-sector reforms, including faster transaction settlements through integration with Bangladesh Bank’s Real Time Gross Settlement (RTGS) system, expanded digital lending via e-Loan facilities, and promotion of pre-suit mediation for resolving loan disputes.
Business leaders said the easing of share transfer and repatriation procedures could signal a positive shift to foreign investors by reducing bureaucratic complexity and improving the overall investment climate.
