OFFLINE

Guidelines for Capital Market Investment in Bangladesh through BRAC Bank Limited Prepared for Non-Resident Bangladeshis (NRBs) & Foreign Investors

Bangladesh Capital Market

# o Bangladesh Capital Market consists of the Dhaka Stock Exchange (DSE) & the Chittagong Stock Exchange which were incorporated in 1954 & 1995 respectively.

# o Both are members of South ASIAN Federation of Exchanges (SAFE), a forum in South Asia to promote the development of securities markets in the region.

# o The Securities & Exchange Commission (SEC) supervises activities of the bourses and its members.

# o Automated trading facilities available at both bourses since 1998.

# o The Central Depository Bangladesh Limited (CDBL) introduced its first electronic book entry in 2004.

# o Market Intermediaries include 238 members of DSE, 135 members of CSE, 28 Full-Fledged Merchant Banks, 6 Asset Management Companies and 5 Custodians6 (Six) Bangladeshi Companies have been added to Dow Jones Safe-100 Index.

Why should you invest in Bangladesh Capital Market?

# o 100% repatriation of capital, dividend and investment profits.

# o Reinvestment of repatriable dividend treated as new investment.

# o No tax on capital gains

# o 10% of all IPOs are reserved for NRBs.

# o World’s Bank Investor Protection Ranking for Bangladesh 19th, Pakistan 25th, India 38th & Sri Lanka 70th.

# o Bangladesh was considered as one of the Goldman Sachs Next 11 countries for a high potential of becoming the world’s largest economies in the 21st century along with the BRICs (Brazil, Russia, India and China).

# o Easy access to ownership of Infrastructure Development companies, high net worth private banks and companies through Capital Market. Requirements for NRBs & Foreign Investors to invest in Bangladesh

# o A Foreign Currency (FC) Account is needed for inward and outward remittance.

# o A Non-resident Investor’s Taka Account (NITA) is required for converting foreign

currency into Taka.

# o All Capital Market investors are required to conduct trading through a Stock Broking Account

# o maintained with any Stock Broker/Member of the respective Stock Exchange.

# o In order to trade dematerialized shares listed with the Stock Exchanges, investors must have a Beneficiary Owners (BO) Account with CDBL.

# o NRB & Foreign Investors may choose to appoint a Custodian to ensure trade execution and safe custody of shares.