A New Mymensingh City Beside Brahmaputra River

For more than two decades, the Brahmaputra River has been the lifeblood of Mymensingh. The river that made waves after waves is now silent. There are dead canal somewhere. Experts have come to think about the turbulent state of the turbulent river. But all the plans flew in the sky like a fairy of imagination, did not even show the desire to touch the ground.

However, due to the will of the Prime Minister Sheikh Hasina, neglect of the River has end. The river caught her eye. And now the oldest Mymensingh is changing around this river. After the declaration of Mymensingh as a division on 13 October 2015, various master plans were taken around the Brahmaputra River. The initiative was taken at the divisional headquarters on the other side of the river. When the municipality was transformed into a city corporation in October 2018, some new wards of the Char area were also included.

Today's Mymensingh is being built along the banks of the Brahmaputra, which runs through the heart of the city. An extended part of the city will be built on the other side. The people of Mymensingh will see a beautiful new city with latest facilities. The combination of old and new will unite this Mymensingh city with three bridges. 

In a meeting of the Executive Committee of the National Economic Council (ECNEC) in last year approved the construction of a bridge at a cost of about Tk 3,500 crore, which will be built in the Kewatkhali area of ​​the city. The 1,100-meter arched four-lane bridge will be modeled on Australia's Sydney Harbor Bridge, the first in the country's history. When the construction of the bridge is completed in June 2025, the communication facilities of Mymensingh with Netrokona, Sherpur and Kishoreganj districts will increase. Besides, trade between Nakugaon and Haluaghat land ports with the capital Dhaka will increase. There are also plans to build two more bridges through Ghagdahar and Kacharighat-adjacent Zero Point areas.

On the other hand, the Ministry of Public Administration has given administrative approval to set up the much awaited divisional headquarters on 945.219 acres of land on the other side of the river. The Divisional Land Commissioner hoped that the DPP and TAPP of the headquarters would be finalized and sent to the project ministry in the shortest possible time.

The Divisional Commissioner said that Prime Minister Sheikh Hasina has directed for proper compensation and dignified rehabilitation of the people of the acquired area. The present government has issued a notification to triple the value of the acquired land. So the victims will get a lot of land. 25 acres of land has been set aside for the affected people in the acquired area. They will be rehabilitated there. The rehabilitation process will start first.

Earlier, Prime Minister Sheikh Hasina had given various instructions in a meeting at her office on September 17, 2016 to set up the Mymensingh divisional headquarters. Mymensingh is the twelfth city corporation of the country. From 21.73 sq km, the city is now 90.17 sq km. In 2020, the ECNEC was sanctioned Tk 1,575 crore to make this city a modern city. The newly expanded 68.44 sq km area has not seen any development. The City Corporation is spending the money on overall development including road development, expansion of drainage system, over bridges, footpaths etc.

With a population of over eight lakhs, this city is slowly being transformed into the smart city, which is now very much visible. Gauripur and Ishwarganj upazilas situated on the other side of the Brahmaputra River. The district administration has proposed to make an economic zone within Mymensingh city and those two upazilas. This was stated by Aminul Haque Shamim, President, Mymensingh Chamber of Commerce and Industry. He said there are plans to set up economic zones on 500 acres of land. If it is implemented, timely decision will be taken.

Mentioning the reason for this, he said that excavation work has been started to restore the navigability of the river. 30 percent of the work has been completed. With the return of full navigability, the communication of goods in the designated economic zone with the port will be easier as well as financially viable. Employment will be directly to two lakh people.

However, towards the end of 2011, there was a touch of development in Mymensingh. The four-lane road from Joydebpur crossroads in Gazipur to Mymensingh in an 88 km stretch changed the landscape of Mymensingh. The highway is about 63 feet wide. The width is even greater next to markets and business centers. The road was officially inaugurated in July 2016 at a cost of BDT 1,800 crore. And with the help of such communication system, Bhaluka and Trishal are now upazilas of heavy industrial area.

Soon the Mymensingh will be one of the most beautiful cities in the country.

Thanks,

 

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European Standard Mahalchhari – Sindukchhari - Jalliapara Road

Last year, The Engineering Corps of the Bangladesh Army has constructed a new 15.5 km long hill road from Guimara in Khagrachhari to Mahalchhari.  Using this road, people of Rangamati, Khagrachhari and Bandarban districts will now be able to move fast across the country including Dhaka without entering Chittagong city. This will save three hours for the people of Rangamati to reach Dhaka. The path will be reduced to 68 kilometers. Mahalchhari-Sindukchhari-Jalliapara of the Ministry of Road Transport and Bridges

The road was constructed by 20 Engineer Construction Battalion under the supervision of 34 Engineers Construction Brigade of Bangladesh Army. The construction work started in February 2019 and will be completed by December 2021, but it was completed in June 2021. As a result, although not officially inaugurated, the road has been opened to public traffic.

The main carpeting road is 18 feet wide. Outside, the hard solder (brick road on both sides) is about 11 feet. The road has 24 km side drain, 28 m culvert, 410 m gravity wall, 630 m retaining wall and 800 m parasiding.

Mahalchhari-Sindukchhari-Jalliapara road construction project director and 20 ECB captain Lt. Colonel Md. Amjad Hossain Didar said that the time and distance of inter-regional communication between Khagrachhari and Rangamati region will be greatly reduced through this road. The transportation and marketing of goods produced in the hilly areas will be much faster and will contribute to the expansion of the tourism industry. He said that at every stage of the construction project, emphasis is laid on carrying out development work without cutting down the hills and without harming the environment. The road will also be helpful in working on regional and internal security issues.

Major SM Khaledul Islam, project officer of the Mahalchhari-Sindukchhari-Jalliapara road construction project, said advanced engineering and technology have been utilized at every stage of the road construction. Advanced construction materials have been used. The people of the area will get the benefits.

The new road has gone through the green hills. Green vegetables planted on zoom farms on both sides and farms are growing. Many local Bengalis and hill families went out to walk on the road. A young man named Chapal Chakma said that there is a road to Khagrachhari through Mahalchhari. That is very inaccessible. The people of the area are very happy because of the new road.

 

Thanks,

 

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Sell of Real Estate Companies in Bangladesh is Increasing

Even though all sectors of business and commerce in the COVID-19 period have been affected, Businessmen in the Real Estate Sector are hoping that they will be able to recover from the catastrophe. In the first eight months of last year, the sales of real estate companies in Bangladesh have increased by 15 to 20 per cent over the same period this year. The flat registration fee was slightly reduced last year by the Government. 

Besides, sales of Plots and Apartments (Both new and used) have also increased. However, the prices of construction materials have gone up during this period. In the budget, the government provides some opportunities for investment in the housing sector of Bangladesh. Bank loan interest rates have also been reduced. Expatriates are also investing in this sector. Overall, Flat sale in various locations in Dhaka and other major cities of the country have increased.

REHAB President Alamgir Shamsul Alamin Kajal said the real estate sector of Bangladesh will be boosted in COVID-19 period. Not just this sector, there will have a positive impact on the entire economy of the country. As there are investment opportunities in the current situation, a lot of money will be added to our economy.

The President of REHAB also said that the activities of construction related sub-sectors including rod, cement, brick and sand, which are involved in the recovery of the housing sector, will increase. This will increase the revenue collection of the government.

Previous flat registration fees in Bangladesh:

• 4 percent gain tax
• 3 percent stamp fees
• 2 percent registration fees
• 2 percent local government tax and
• 3 percent value added tax (VAT)

 

Present flat registration fee in Bangladesh:

• 4 percent gain tax (same as before)
• 1.5 percent stamp fees
• 1 percent registration fees
• 1.5 percent local government tax and
• 2 percent value added tax (upto 1,600 square feet)

 

Now the demand for commercial flats and apartments has increased in the following area inside Dhaka city:

• Gulshan
• Banani
• Baridhara
• Motijheel
• Dilkusha

 

Besides, demand for residential flats has increased in Dhaka:

• Dhanmondi
• Mohakhali
• Lalmatia Housing Society
• Kalabagan
• Uttara Model Town
• Bashundhara Residential Area
• Karwan Bazar
• Vijaynagar
• Nikunja
• Wari
• Segunbagicha

 

Demand for flats in Chittagong / Chattogram:

• Khulshi
• Agrabad
• Nasirabad

 

Demand of commercial, residential and studio flats / apartments in other major cities such as Sylhet, Cumilla, Feni, Noakhali, Coxsbazar, Rajshahi, Narayanganj, Gazipur, Mymensingh etc are also increasing day by day.

Some real estate company owners are saying that the price of construction materials such as Rod and Cement are also increasing. As a result, they are a little scared.

Home loans are announced for government employees at 5 percent interest arate. It inspires hope among real estate businessmen. The annual market of the real estate companies in Bangladesh / housing sector in the country is now around Tk 60,000 crore. The annual growth in this sector is 15-17 percent. The annual demand is 1 lac 20 thousand flats.

 

Thanks,

 

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Real Estate Companies in Bangladesh are Rising

During the COVID-19 Corona virus period, buyers in the housing and real estate industry of Bangladesh are increasing. Entrepreneurs in the sector saying that the demand for buyers has increased so much in recent times that top class Real Estate companies in Bangladesh do not have unsold flats. Companies that had stopped building construction work for so long have now come forward and resumed their construction.

Demand from buyers is on the rise as the government provides undisclosed investment facilities in the housing sector. Currently, the highest demand for Apartment / Flats in Bangladesh is among government employees. Some investors demand land and plots. In such a situation, the concerned companies have demanded to reduce the interest and registration cost of loans in the housing sector to 7 percent. The real estate sector in Bangladesh is now a lucrative investment destination for buyers and investors. The registration cost of buying flats and plots is now 10 percent and it comes with single digit or one digit interest loan.

In this regard, Real Estate and Housing Association of Bangladesh-REHAB President Alamgir Shamsul Alamin Kajal said that the real estate companies in Bangladesh are now getting good response from buyers. The situation is such that even good companies are not able to sell flats to the buyers. Buyers are growing every day in recent times. Interest in buying flats and plots is increasing among them. As a result, many companies are taking up new projects to build flats inside Dhaka, Chattogram and other cities across the country.

The undisclosed income is also being invested in the housing sector. Owners of companies are demands the interest rate on bank loans and registration cost of flats and plots should be reduced to 7 percent. Some banks are now keen to lend. Some banks are giving loans at 7 percent interest rate. The recovery in the housing sector is also boosting the overall economy.

Business in the housing industry is coming back. Buyers respond more than ever. This is due to two reasons- one is that money laundering has decreased during the Corona period. Another is the government's undisclosed investments facilities for two consecutive financial years. All in all, the real estate company in Bangladesh is now in a good position.

JCX Developments Limited is a state-of-the-art flat builder in the country's elite Bashundhara residential area inside Dhaka city. Iqbal Hossain Chowdhury, the managing director of the company and director of FBCCI, a top organization of businessmen, told that there has been a lot of demand from buyers for good quality flats in recent times. This demand has been created mainly due to undisclosed money investment facilities. As a result, there is a huge interest of buyers for flats in Bashundhara R/A.

Investors have lots of interest for both ready and used flats in Dhaka city. Some searching keyword in Google are: Used flat sale in dhaka, Low price flat in dhaka, Flat sale in dhanmondi, Studio apartment in dhaka, Used flat sale in mirpur, Ready flat for sale in mohammadpur dhaka, Ready flat sale in dhaka, Flat for sale in dhaka uttara, Flat sale in banasree, Dhaka housing adabor etc.

In the national budget for the fiscal year 2020-2021, the legal directive to allow higher revenue and economic activity in the private sector said that no matter what is in the country's customary law, no one can raise any question about the investment of undisclosed money. To take such an opportunity, taxpayers have to invest undisclosed money in land, flats, buildings and apartments, banks, savings certificates, stock exchanges, bonds or any other such securities. To avail this facility, income tax at the rate of 10 percent has to be paid. Investing in undisclosed funds will reduce money laundering and tax evasion. The move is expected to boost mainstream economy, employment and revenue growth. This facility will be continued in the new fiscal year 2021-22 as well as provision has been made to impose penalty at the rate of 5 per cent on other undisclosed funds. 

According to the concerned, the annual market of the real estate companies in Bangladesh / housing sector in the country is now around Tk 60,000 crore. The annual growth in this sector is 15-17 percent. The annual demand is 1 lac 20 thousand flats. Overseas income / Remittance and undisclosed money owners buy more real estate properties. Expatriate income of Bangladesh did not decrease during COVID-19 period. Besides, there is an opportunity to invest undisclosed money by buying land or flats. As a result, trade in this sector has increased a lot. The catastrophic disaster that hit 458 sub-sectors of the housing industry in Corona is now a beacon of hope. Around BDT 2 lac Crore have invested in more than 2,000 industries in this period.

 

Thanks,

 

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Japan will build Smart City in Bangladesh

Smart cities, are the result of the growing importance of orienting our life toward sustainability. There are different parameters by which a city ranks more highly than another. To achieve this 10 key dimensions are considered: Governance, urban planning, public management, technology, environment, international projection, social cohesion, mobility and transportation, human capital and economy.

The development of 'smart cities' has been a top priority for many countries and Bangladesh may soon join their ranks. In a bilateral meeting with Bangladesh's ICT Minister Junaid Ahmed Palak and the Japanese Ambassador Naoki expressed Japan's interest in building a smart city in Bangladesh. Last year Japan has set aside a 250 billion yen (US$ 2.4 billion) fund to support Smart City projects by Japanese companies and improve decarbonization measures in 26 cities across ASEAN.

According to Mr. Naoki, Japan has contributed in many sectors, including infrastructural development of Bangladesh. There are currently more than 300 Japanese companies operating in Bangladesh - three times as much as in the last 10 years.

Japan is the largest Asian export market for Bangladesh, amounting to USD 1.3 billion. Despite the many challenges posed by the Covid-19 epidemic, Japanese companies are ready to expand their business in Bangladesh.

Naoki called for the development of strategic relations to further enhance cooperation between the two countries. He said that ICT sector is now the main driving force of the economy of Bangladesh. The Japan International Cooperative Agency (JICA) can further enrich Bangladesh's plan to become a developed economy by the year 2041 by assisting in the development of technology-dependent human resources.

Naoki emphasized the importance of collaboration to further expand cooperation between the two countries through the development of strategic partnerships between Japan and Bangladesh.

To further strengthen Bangladesh's ICT sector, ICT Minister Junaid Ahmed Palak made a number of proposals to the Ambassador, including on cyber security, e-waste management and e-governance. Palak said, "We have already sent a proposal to ERD to set up a Bangladesh-Japan ICT University,".

Japan has allocated 2.4 billion to support Japanese companies in the Smart City project and the development of carbon-free systems in 28 ASEAN cities. Tokyo expects all 26 cities to present their smart city projects by the end of this year, and eligible projects will be selected by March.

Japan expected these 26 cities across ASEAN to present their Smart City development plans at the end of last year, with eligible projects to be picked by March this year. It also expects Japanese companies to have basic plans for these cities with feasibility studies conducted. However, at the time of writing, its progress is still unclear

 

Thanks,

 

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Used Flat for Sale in Dhaka | Secondary Property Market in Dhaka

Recently one of my friends bought a used 1,600 sqft flat in Sector 10 of the Uttara in Dhaka city at BDT 85 lacs. If he wanted to buy a new flat, he would have to shell out at least Tk 1.20 crore, an amount that would have been tough for him to manage. But my friend is very happy now he said, “The used flat he bought is almost new, and without any hassle, the owner has handed over the possession of the property”. People are searching for used flat for sale in Dhaka.

The market size of the secondary Apartment / Flat segment in Dhaka city has no reliable data. Flat / Apartment buyers in the city are now showing an increasing interest for used flat in Dhaka as the properties are cheaper and spacious and come with utility services, especially gas connection, according to realtors and home loan providers. The demand for used flat for sale in Dhaka is around 20 per cent of the total demand for the properties in the city.

The demand for the secondary flat is growing day by day. There can be two reasons: they can be bought at lower prices, and they are roomy. Data on property demand in the last 14 months showed the requests for secondary properties in Dhaka averaged 76 per cent of all queries. The owners cannot use around 400sft of a 2,000 sft flat although they have to pay the price. But, the owners of used flats can use the entire available floor space and rooms were spacious.

For most of the cases about used flat for sale in dhaka, buyers have to renovate the flat. In some cases, they get a flat in excellent condition. This high demand for secondary properties is reflected everywhere. The ready flat market segment or the secondary property market has always been at the forefront of Bangladesh's real estate industry.

The highest percentage of query for used flat for sale in Dhaka, low price flat in dhaka was and such queries experienced in August last year when it accounted for a staggering 86 per cent. Even during the peak of the pandemic in April and May in 2020, when the entire real estate sector experienced a slowdown, about 65 per cent of all property demand in Dhaka was for ready flats.

People on the internet / Google are searching for secondary market properties for used flat sale in Mirpur, Uttara, Dhanmondi, Kalabagan, Rampura, Banasree, Moghbazar, Aftab nagar, Gulshan, Segunbagicha, Banani, Khilgaon, Mohammadpur, Shyamoli, Bashundhara residential area in Dhaka city. The searching queries show that the demand for secondary properties is solid.

Some popular area such as Mirpur, Uttara and Mohammadpur have plenty of ready flats available, even though there hasn't been an adequate supply of secondary properties / used flat for sale in Dhaka. One of the major reasons people search for homes in Mirpur, Badda or Dakshln Khan is affordability. Some parts of Uttara can be great locations to find affordable secondary properties.

 

Used flat sale in Mirpur:

Based on the present market report and data, in last 4 to six months the average price of ready flats in Mirpur was around Tk 4900-5000 per sft, with certain places such as Pirerbag and Section 11 offering flats at Tk 3,100+ per sft.

 

Used flat sale in Uttara:

The average price of ready flats in Uttara was BDT 6,500+ per sft, though the inner sectors are more affordable.

 

Used flat sale in Dhanmondi:

Dhanmondi area is more complex in terms of the price of ready flats. The average price of recently added properties can be more than Tk 10,000 per sft. Properties in West Dhanmondi and Shankar are sold at Tk 6,500+ per square feet.

 

People like to purchase suitable secondary flats due to availability of gas connection, while there is no guarantee that new flats will have the connection. Real estate experts said that secondary flats were comparatively cheaper than the new ones, so the middle-income groups that couldn't spend a big amount purchased used properties. The non-bank financial institution provides home loans against secondary flat. The number of loan files for secondary flats is increasing gradually.

The REHAB had urged the National Board of Revenue to reduce the registration cost for secondary flats to help expand the segment of the housing market. The demand for secondary flats was good, but products were not available.

 

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

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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