Manufacturing and service companies can now issue preference shares to non-resident investors, with no prior approval needed for dividends of up to 5%.
Bangladesh Bank (BB) announced on 3 November 2026 that resident companies in the manufacturing and service sectors can now issue preference shares to non-resident investors to facilitate foreign investment and dividend repatriation.
Under Foreign Exchange Investment Department Circular No. 4, companies do not need central bank approval if the dividend rate does not exceed 5% of face value. Higher rates, including participating or adjustable dividends, require prior approval through the company’s nominated Authorised Dealer bank.
The shares must be issued at par against foreign currency brought in through official banking channels. Authorised Dealer banks can remit dividends and redemption proceeds without prior approval, provided the issuance complies with the rules and all taxes are deducted and paid. Proceeds must go back through the same bank and to the country from which the investment came.
The circular, issued under Section 20(3) of the Foreign Exchange Regulation Act, 1947, took effect immediately.
