News

BB eases preference share issuance, dividend repatriation for non-resident investors
04 Nov 2026
Source: The Financial Express

Bangladesh Bank has eased regulations governing the issuance of preference shares, their conversion into ordinary shares, redemption, and dividend repatriation for non-resident investors in Bangladeshi companies.Bangladesh Investment Guide
The Foreign Exchange Investment Department (FEID) of the central bank issued a circular on Tuesday, clarifying the procedural requirements for issuing companies, non-resident investors, and authorised dealer (AD) banks.

Under the new directives, Bangladeshi companies can now issue preference shares to non-resident investors at a dividend rate of up to 5 percent without prior approval from Bangladesh Bank.

Following the issuance, the respective companies are required to submit a report to the FEID.

However, if a company intends to issue preference shares carrying a dividend rate exceeding 5 percent, it may seek prior approval from the central bank by providing proper justification for the proposed rate.

The circular also specified that no prior permission from Bangladesh Bank will be required to repatriate dividends earned on preference shares or to process the redemption of such shares by non-resident investors.Bangladesh Investment Guide

Additionally, the circular outlines clear guidelines for converting preference shares into ordinary shares and details the standardised process for reporting and transaction management.

 
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