Who are NRB?
A Bangladeshi citizen living abroad with valid status
- Either as foreign country’s permanent resident or with valid work permit
- 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
What are the benefits for Investing as NRB?
- 10% of all issued IPO are reserved for NRB – may be increased very soon for at least very large issues
- No Capital Gains tax
- Minimum 60% of ICB NRB Mutual Funds are reserved for NRB’s (Last one advertised on 11th April, 2008)
- Can also trade in the secondary capital market while abroad through Nominee in local currency. Availing custodian services for individuals are difficult and expensive. So investment amount should be transferred either to Nominee or Brokers trading account and then trade on secondary market either by nominee or personally by phone calls, fax, email etc. – remember, the buy sale order will have to be faxed in within 24 hours in account is operated personally.
How to start?
- Open a BO Account and a Trading Account as an NRB 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.
- Start
What is a BO Account?
BO Account stands for Beneficiary Owners Account. This is the account that holds your shares like an inbox holding all your emails.
- All shares from new IPO’s and most of secondary market shares are in electronic form and a BO account, owned by the investor, hold the electronic shares
- All NRB are requested to open a BO account through any one of the Brokerage houses of DSE by filling required forms and submitting required documents.
BO Account Opening & Documentation:
For opening a new BO account, Clients are required to collect ‘Account Information Form’ from any of our branches and submit the Form after duly filled in by the clients. The ‘Account Information Form’ must accompany the following documents:
For Non-Resident Bangladeshi (Individual & Joint):
- Photocopy of Passport / Social Security Card / Resident Card etc. (either one) duly attested .If you want to open your account from a foreign country then attestation needs to be done the respective Bangladesh Embassy or High Commission.
- Certificate of an FC account with any Bank with branch in Bangladesh.
- 2 (Two) Passport size photographs, containing account holder’s signature on the back, duly attested. (If you want to open your account from a foreign country then attestation needs to be done the respective Bangladesh Embassy or High Commission)
- Nominee’s signature and 2 (Two) passport size photographs containing nominee’s signature on the back (duly attested by the investor) in the account opening form.
- Employment certificate / trade license copy / work permit or Pay slip / tax return document (either one) 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 you while you are abroad. His/her photo (attested by the NRB) and signature in the account opening form (POA can be any adult person of legal age residing in Bangladesh). Or
- There is another option. Dhaka Bank Limited is providing Custodial Service to its valuable NRB clients. Here you need to sign on an agreement to give us the authority for maintaining the account on your behalf as per your instruction. Till now, we are providing this service at free of cost.
- If you have an intention to repatriate your investment, you will need to open a NITA a/c.
For detail click here