Investment Process Summary
Foreign investors need to fill a Customer Account Information Form with NRBC Bank Securities Ltd (can download from our website) and send the form to the brokerage house, duly filled and signed by authorized personnel, together with photocopy of other required documents. They also need to open a Custodian Account with any custodian bank in Bangladesh. Along with BO account opening, the custodian bank will take care of other account openings, such as Cash Account (or NITA A/C), Securities A/C and F/C Account.
After opening the respective accounts, foreign investors can trade directly with NRBC Bank Securities Ltd. They can give buy/sale order to NRBCBSL through email, fax, and through phone. Trade confirmation will be sent to the investors after trade hour via auto email following execution of the order.
The settlement process - transfer of share and cash - is done mutually by NRBC Bank Securities Ltd and the custodian bank at DVP (Delivery VS Payment). The settlement period varies with the category of shares - (T+9) days for Z-category shares and (T+3) days for all other categories (A, B, G and N category). However when a stock is traded in the spot market, the settlement period is T+0 day for all categories of share.
From NRBC Bank Securities Ltd side, there is only one fee/charge - trade commission, set at maximum 0.50% on total trade value, with prime rates applicable for prime clients. There is no account opening fees or any other fees. Moreover foreign investors will get a number of facilities from NRBC Bank Securities Ltd which includes top quality research report and proprietary index prepared and maintained by NRBCBSL Research.
Foreign Investors also need to take into account the relevant tax associated with trading in the Dhaka Stock Exchange. Foreign individual investors only need to pay 25% tax on cash dividend, deducted at source. The rate is 20% for institutional investors. Institutional investors are also charged with capital gain tax of 10% is charged on profit portion only, deducted during repatriation of money.