Investment Process
Foreign investors need to fill a Customer Account Information Form with BRAC EPL Stock Brokerage Ltd and send the form (hard copy) 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. Together with BO account opening, the custodian bank will take care of other account opening, 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 BRAC EPL Stock Brokerage Ltd. They can give buy/sale order to BRAC EPL Stock Brokerage through email and/or fax or through Bloomberg. Trade confirmation will be sent to the investors via email and/or fax following execution of the order.
The settlement period varies with the category of shares. For any category other than Z-category, that is A-category, B-category, G-category and N-category, the settlement period is T+2 days (transaction date + two working days) for both buying and (T+1) selling of shares. For Z-category shares, the settlement period is T+3 days (buy settlement). However, when a stock is traded in the spot market, the settlement period is T+0 day (sell settlement) for all categories of share and T+1 for buy settlement. The settlement process is done mutually by the brokerage house (BRAC EPL Stock Brokerage Limited) and the custodian bank at DVP (Delivery VS Payment).
From BRAC EPL Stock Brokerage side, there is only one fee/charge – trade commission (market charges inclusive). There are no account opening fees or any other fees. Moreover, foreign investors will get a number of facilities from BRAC EPL Stock Brokerage which includes top quality research and corporate access support.
Foreign Investors also need to take into account the relevant tax associated with trading in the Dhaka Stock Exchange. Foreign institutional investors only need to pay 20% tax on cash dividend, deducted at source. The rate is 30% for foreign individuals.
Foreign Currency Rule
- Foreign Exchange Guideline Vol 1
- Foreign Exchange Guideline Vol 2
Liquidity Management
BRAC EPL Stock Brokerage Ltd. provides liquidity support to the foreign investors (individual and institutional) to facilitate smoother transaction of securities. For further information please contact us at the following address: info@bracepl.it.com
Foreign Investors Contact
Foreign Investors Contact:
Ahsanur Rahman
Chief Executive Officer
Mobile: +8801730357991
Email(s): info@bracepl.it.com
How to open an account
Customer Account Information Form:
For BO account opening, foreign investors need to open a Custodian Account with any custodian bank in Bangladesh. Previously, the foreign banks, such as Standard Chartered Bank (SCB) & Hong Kong and Shanghai Banking Corporation (HSBC), were providing custodian services to foreign investors. However BRAC Bank and some of the other local banks are also providing the same service to the investors. Together with BO account opening, the custodian bank will take care of other account opening, such as Cash Account (or NITA A/C), Securities A/C and F/C Account. Following is a list of custodian banks:
- BRAC Bank Limited
- Hong Kong and Shanghai Banking Corporation
- Standard Chartered Bank
- Citi NA
- Commercial Bank of Ceylon
B/O Account Opening:
Foreign investors need to fill a Customer Account Information Form with BRAC EPL STOCK BROKERAGE LTD. The form is different for individual investors and institutional investors. Foreign investors need to send the form (hard copy) to the brokerage house, duly filled and signed by authorized personnel. They also need to attach photocopy of other required documents (hard copy), stated below:
For institutional investors
- A copy of the Memorandum and Articles of Association of the company.
- A copy of the Certificate of Incorporation of the company.
- A copy of the Authorization/Board Resolution to open and operate the account with us.
- A copy of the Authorization/Board Resolution authorizing the executives to operate the account, including their photographs.
Fees & Charges
There is only one fee/charge from the brokerage side. Investors only need to pay the trading commission on their buy/sale order. BRAC EPL Stock Brokerage does not charge any account opening fees or any other fees. The commission fee is set at maximum 1% on total trade value with prime rates applicable for prime clients.
IPO Investment
To apply for an IPO, foreign investors need to contact the custodian bank. The custodian bank will carry out the process of applying for IPO allotments.
Following is a list of custodian banks:
- BRAC Bank Limited
- Hong Kong and Shanghai Banking Corporation
- Standard Chartered Bank
- Citi NA
TAX Impact
| Foreign individual | Foreign company | |
|---|---|---|
| Cash Dividend* | 30% | 20% |
| Capital Gain | 15% | 15% |
* Deducted at source
Settlement Procedure
The settlement period varies with the category of shares. For any category other than Z-category, that is A-category, B-category, G-category and N-category, the settlement period is T+2 days (transaction date + two working days) for both buying and (T+1) selling of shares. For Z-category shares, the settlement period is T+3 days (buy settlement). However, when a stock is traded in the spot market, the settlement period is T+0 day (sell settlement) for all categories of share and T+1 for buy settlement. The settlement process is done mutually by the brokerage house (BRAC EPL Stock Brokerage Limited) and the custodian bank at DVP (Delivery VS Payment).