Foreign investors are free to invest in OMFs as over the counter (OTC) products
through Non-resident Investor's Taka
Account (NITA).
The funds shall have to be operated under authorization from Bangladesh
Securities And Exchange Commission (BSEC).
Foreign Exchange Investment Department (FEID), Bangladesh Bank (BB) needs to
be intimated within 14 days of the
issuance of units of funds in favor of foreign investors including National Board of Revenue
(NBRs), Bangladesh.
Bangladesh Bank elaborates fund transfer and valuation mechanism-
Dividends (net of applicable taxes) earned from OMF are freely
creditable to NITAs.
Surrender price/sale proceeds of OMF Units may be transferred to NITAs
subject to
BB approval with recommendation
letter from trustee regarding fair value of the funds if less than 30% of total fund
being invested in unlisted
securities.
Surrender price/sale proceeds of OMF Units are transferable to NITAs
subject to BB
approval along with valuation
report if 30% or more of total fund being invested in unlisted securities or fund
managers are irregular in weekly
public disclosure of NAV.
Sale proceeds and dividends from OMF held by NRBs are permitted to
transfer to
resident BD nationals upon written
prayers to funds managers (BB needs to be intimated only).