Made in Bangladesh Cars | Introducing BANGLA CAR

The first Made in Bangladesh Car of the domestic brand is coming to the market soon after EID-ul-Fitr with some modern features and facilities. The seven-seater Made In Bangladesh car price will be only around 30 lacs BDT. The Bangladeshi Car is being marketed by Bangla Cars Limited, a concern of Hossain Group of Industries. For the first time ‘Made in Bangladesh’ will be appeared on the car body.

Ref: Daily Jugantor

 

Mr. Zakir Hossain, managing director of the Hossain Group said that if all goes well with the reduction in the incidence of COVID-19, the company will start exporting the local brand 'Bangla Car' within the next year. Initially 30 cars are running on trial basis, 10 cars have already been sold. He also said that the benefits that a customer gets in a Mercedes Benz / BMW brands at a cost of crores of Taka, same will be available in Made in Bangladesh Car for only BDT 3 million.

As per the information provided on the official website of Hossain Group the Glory i-Auto is an intelligent SUV designed with some special features.

• i-Talk, Drive Smarter: The Glory i-Auto is the first smart SUV from DFSK with virtual assistant able to understand the context of your voice commands. A new driving comfort is created from the convenience that comes from the smart features of the brand.
• Phone Connection: Easy access to mobile device features like make a telephone call and access history of telephone
• Voice Navigation: Support activation of navigation system by voice command
• Media Command: Activate and control the media like pictures, music, radio and video
• Car Control: Facilities deep access of your vehicles like open the window, turn on the A/C, close sunroof and others
• Connectivity: Supports the system connectivity with Bluetooth and WiFi

 

The special feature is that the car will carry the motto Made in Bangladesh. Japan, China and India will lead the country in car production. In the first phase, there will be showrooms of Bangla Cars in 8 divisions of the country. Besides, the manufacturer is going to open 30 more showrooms across the country.

In the meantime, a showroom has been opened at Tejgaon industrial area in the capital. Where some cars of different colors of the native own brand Glory i-Auto has been displayed. The new model car of 2021 is also being decorated in the showroom. As per the information, the factory of Bangla Cars is located in Panchabati of Fatullah, Narayanganj. 12 types of vehicles will be produced and marketed from there including Cars, Trucks, Buses, Lorries and Pickups etc.

However, although the car sales activities have started, but the official journey has not started yet. Though it was supposed to be inaugurated on March 26 of 2021, the inauguration ceremony has been postponed due to the COVID-19 situation. If all goes well, the official inauguration will take place soon.

The Hossain Group is working jointly with Japan, Indonesia and China to manufacture Bangladeshi Car as a brand name of ‘Bangla Car’. The MD also said, we are going to manufacture cars with local brands, local designs. The cars will be a combination of ISUZU Japanese engines, Chinese bodies and Indonesian chassis. These cars are different from other brands. Photon or Mitsubishi can make one or two models of cars in the country but Bangla Car can manufacture variety of models. From 1500 to 2500 cc and even different colors based on buyer needs.

The Made in Bangladesh Car is not a foreign car brand, the factory is producing own car for the first time in own name in the country. Toyota is a Japanese company, Haval is a Chinese company same as Bangla Car is a Bangladeshi car manufacturing company. Like TATA of India, the company will meet the demand of the country and then will start export. The company is now in trial production, more cars will come within upcoming months, the world will see a new car named as Bangla Car which will be 'Made in Bangladesh Car.'

The company will start manufacturing Pickup, Lorry and Truck soon. There will be total 12 types of vehicles including Buses. Moreover, electric cars will be launched next year. PHP is making cars with Photon's, Pragati is making with Mitsubishi. But the Bangla Car is the country’s first own brand.

All services and facilities of the manufactured vehicles will be available from Bangladesh. The company has a plan of producing four to five thousand cars every year. Their plan is to produce various kinds of vehicles including electric motorcycles, electric vehicles, big lorry trucks, cement carries etc. Five years warranty / guarantee will be provided for each vehicle. Bangla Cars Limited plans to build up an integrated base of production, marketing and service in the whole country for our own Made in Bangladesh Car.

 

Thanks,

 

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Dhaka Stock Exchange | Investment Facilities for NRB

A Bangladeshi citizen living abroad with a valid status like foreign country’s permanent resident or with valid work permit is called NRB (Non-Resident Bangladeshi). In case of a foreign passport holder an endorsement either from the relevant Bangladeshi embassy or from Bangladesh foreign ministry stating that “No visa is required” for traveling to Bangladesh – as a proof of dual citizenship.

 

Incentives for Non-Resident Bangladeshis (NRBs):

• 10% quota in all Initial Public Offerings (IPOs) is reserved for non-resident Bangladeshis.
• Can also trade in the secondary capital market while abroad through Nominee.
• There is no Capital Gain tax on individual.
• Individual Income Tax assessment is similar to any other Resident Bangladeshi.
• @10% tax rebate on investment allowance on security investment.

 

How to Start:

• Open Foreign Currency (FC) Account that is needed for channeling foreign currency in as well as repatriation of earnings from investment.
• Open Non-Resident Investors Taka Account (NITA) that is required for converting foreign currency into BDT.
• Open a Custodian Account with any of the SEC registered Securities Custodian so that NRB & Foreign Investors may choose to appoint a Custodian to ensure trade execution and safe custody of shares.
• Open Beneficiary Owners (BO) Account with any brokerage house
• Assign a Nominee/ Power of Attorney (POA) - optional
• A nominee for inheritance/transmission, in case something happens to investor, is required to be assigned. Remember that this nominee and the POA may or may not be the same person.

 

Required Documents to open NITA and FC Account:

• Photocopy of Passport / Social Security Card / Resident Card etc duly attested (if you are situated in a foreign country then attestation needs to be done the respective Bangladesh Embassy or High Commission)
• Passport size photographs duly attested
• A Nominee - beneficiary in case of death of the investor. His/her signature and photo (duly attested by the investor) on the prescribed form provided by the brokerage house
• Employment Certificate / Trade license copy / work permit or Pay slip / tax return document as a proof of earning status of the NRB
• A nominated person with POA (Power of Attorney) who will sign trading documents on behalf of the NRB while he is abroad. His/her photo (attested by the NRB) and signature in a prescribed form by the brokerage house (POA can be any adult person of legal age residing in Bangladesh)
• If the broker is a bank then an extra form of KYC (Know your customer will also have to be filled)
• Initial fund will have to be a cheque or pay order or other allowed form drawn from the FC account

 

Required Documents for Custodian Account:

• Photocopy of Passport / Social Security Card / Resident Card etc duly attested (if you are situated in a foreign country then attestation needs to be done the respective Bangladesh Embassy or High Commission)
• Passport size photographs of Account Holder duly attested l Photographs of Authorized person
• A Nominee - beneficiary in case of death of the investor. His/her signature and photo (duly attested by the investor) on the prescribed form provided by the brokerage house
• Employment certificate / trade license copy / work permit or Pay slip / tax return document as a proof of earning status of the NRB

 

Required Document for Stock Broking and BO Accounts:

• Photocopy of Passport / Social Security Card / Resident Card etc duly attested (if you are situated in a foreign country then attestation needs to be done the respective Bangladesh Embassy or High Commission)
• Passport size photographs of Account Holder duly attested
• Photographs of Authorized person
• Photographs of Power of Attorney (POA)
• A Nominee - beneficiary in case of death of the investor. His/her signature and photo (duly attested by the investor) on the prescribed form provided by the brokerage house
• Bank Statement or Certificate from FC Account

 

How to Operate from Abroad:

• Collect the relevant forms from your preferred brokerage house via mail. Fill it up and get the introducer part attested by the local Bangladeshi Embassy as a proof of the NRB status by providing to them the required documents.
• Get your photos attested by the local Bangladesh Embassy as well
• Send the forms back to the brokerage house with the Nominee and POA part fi­lled in. Send the POA to the brokerage house.
• IPO application needs to be ­filled on a prescribed form. Such forms can be obtained through mail, website of issuing company, or through broker etc.
• Trading in secondary market is done by Buy/Sell order forms.
• If POA (Nominee) is assigned then the POA need to sign the Buy/Sell order form within 24 hours of order placement
• If NRB wishes not to assign a POA then orders can be placed via phone or email (broker approval required) and then a signed Buy/Sell order form needs to be faxed to broker within 24 hours
• Trading will be carried out within prevailing market guidelines
• Shares will be credited or debited to the BO account accordingly

Note:

If NRB is interested to avail custodian service then it is advisable to try to avail the service collectively. The custodial service provided by the local Custodians in Bangladesh (HSBC Limited, SCB Limited, Dhaka Bank Limited, South East Bank Limited, AB Bank Limited and Citi NA), is done through whole sale window not retail. As such they are not comfortable to provide custodial service to individual in a cost effective manner. The way to get collective custodial service is to contact any fund manager or international broker or global custody service provider in your locality and contact a custodian in Bangladesh through them. In this way you are free to have individual level BO and order placement without any problem through the intermediary. This process will easily enable you to take part in the secondary market with proper legal channels for foreign currency in and out.

For updated and latest information please visit the official website of DSE BD (Dhaka Stock exchange Ltd). 

Thanks,

 

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Dhaka Stock Exchange | Foreign Investors Guide

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Dhaka Stock Exchange | Foreign Investors Guide

Bangladesh Government provides a very friendly and open investment atmosphere and facilities for foreign investors.  Any Foreigners residing in Bangladesh or abroad willing to invest in Bangladesh Capital Markets are considered as a Foreign Investors.

Guides for Foreign Investors:

• Open NITA (Non-resident Investment Taka Account) with AD (Authorized Dealer) of foreign currency department of any ­financial institution or through any custodians
• Select Custodian in Bangladesh (HSBC Limited, SCB Limited, Dhaka Bank Limited, South East Bank Limited, AB Bank Limited and Citi NA)
• Open BO through custodian
• Open Trading Account with preferred broker (optional as the custodian will provide the service through holding cash account (NITA) on behalf of the Foreign Investors)
• Start Trading

NITA Account:

• Non-resident Investment Taka Account (NITA) is an account for channeling foreign currency in as well as repatriation of earnings from investment
• All earnings from investments (e.g. Cash Dividends) are credited to the NITA account
• An audited statement, certifying that all proper taxes are already withheld from the earnings - usually taken care of by the custodian, for fund repatriation purpose

 

BO Account (Beneficiary Owners Account):

• BO account holds shares purchased or shares credited due to corporate declarations

 

Requirements for opening BO accounts (Individual):

• Photographs - duly attested
• Bank Statements
• Copy of pay slip or tax return (optional as a part of KYC [Know your Customer])
• Copy of employment certi­ficate or trade license (license to operate business at individual or proprietorship level)
• Copy of Passport
• Photographs of Nominee (beneficiary is case anything should happen to investor) and other details
• Filled other relevant forms
• Any other requirements by the custodian

 

Requirements for opening BO accounts (Institutional):

• Copies of Memorandum and Article of Association
• Certificate of Incorporation
• Copy of Board resolution permitting investment / trade in Bangladesh
• Custodian details
• Copy of Board resolution regarding authorized personal to handle the account and all relevant identification documents as well as specimen signature

 

Corporate Declarations:

• Cash dividend warrants goes to respective custodian and custodian decides the fate of such as instructed by the FI
• Share issued by stock dividend declaration goes directly to FI’s respective BO account

 

Common services provided by local Custodians:

• Account Services
• Trade settlement Services
• Registration services
• Safe keeping services
• Corporate Action services
• Foreign Exchange Services
• Cash management services
• Market expertise
• Escrow Services

Trading (Custodian ↔ Broker):

• Custodian usually receives orders via SWIFT or any other acceptable standard
• Custodian carries out share and monetary transactions with the local broker
• DVP (Delivery versus Payment): Delivers shares from FI’s specified BO to Brokers BO upon Receiving Payment only. DVP is applicable for sale orders
• RVP (Receive versus Payment): Receives shares to FI’s BO account of any other Omnibus BO as specified by FI and makes payment. RVP is applicable for buy orders
• For DVP the broker sends sale confirmation to FI which in turn is communicated by FI to custodian. Then Broker confirms payment amount and quantity of shares involved with custodian. Then broker pays the custodian to receive the shares.
• For RVP the broker sends buy confirmation to FI which in turn is communicated by FI to custodian. Then Broker confirms amount and quantity of shares involved with custodian for the transaction. After settlement with the Exchange (after prevailing settlement periods) the broker delivers the shares to the custodian to receive payment for the shares
• FI send buy/sale order notice to custodian and broker separately either directly or through fund manager/global custodian /international broker
• After execution of order the broker communicates with custodian to match the order
• Once the orders are matched the settlement between broker and custodian takes place

 

Tax Rates:

• No capital Gains Tax on individual (subject to the condition that such assesses is entitled to similar exemption in the country in which he is resident)
• Income tax is @25% for Individuals
• 25% tax at source is deducted by issuer in case of cash dividend

 

Important Notes:

1. Please note that it is advisable to hold BO accounts for each individual. This can be done by the custodians even if the custodian is arranged collectively by multiple investors. This should be done to avoid some regulatory complicacies e.g. avoiding substantial acquisition (10%) at individual investor level etc.
2. All local custodians provide custodial service at a whole sale level. As such they can easily provide custodial service to any institution or collective investors coming via a global custodian or fund manager or international broker. They may not agree to provide custodial service to individual investors even though there are no legal bindings except for high profi­le individual foreign investor.
3. Individual FI’s can best avail service if they come collectively through any global custody or fund manager or international broker such that the retail service part is not with the custodian. The local custodians do not have any problem opening BO’s at individual level even if they seek service collectively.

 

For updated and latest information please visit the official website of DSE BD (Dhaka Stock exchange Ltd).

 

Thanks,

 

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