AIFs (impact fund, venture fund, private equity fund etc.) as approved under
Bangladesh Securities and Exchange
Commission (Alternative Investment) Rules, 2015.
Foreign Investors are free to invest in AIFs through Non-resident Investor's
Taka Account (NITA) without prior
approval of Bangladesh Bank (BB). However, FEID, BB must be informed within 14 days of
issuance, transfer or redemption
of units of AIF in favor of and/or by non-resident investors with necessary documents.
BB elaborates fund transfer and valuation mechanism-
The payment against purchase of units of AIF shall be made by an
inward remittance through normal banking channel
including by debit to NITAs, Foreign Currency (FC) accounts, Non-resident Taka
Accounts of overseas branches and
correspondents (NRTA Vostro).
Dividend may be transferred abroad directly or credited to NITA/FC
accounts/NRTAs (Vostro).
Fair value of Units can be transferred abroad with prior permission
from BB.
Fair value of Units can be credited to NITA with prior permission from
BB.
Valuation report needs to be submitted (prepared by eligible valuers -
CA firms and merchant bankers).
ADs shall carry out due diligence with regards to KYC/AML/CFT norms of
the transactions.