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NBFI can invest in Alternative Investment Fund – Bangladesh Bank

Non-banking financial institutions (FI) can now invest in the non-listed special purpose funds (e.g. Alternative Investment Fund, Special Purpose Vehicle, or any other similar fund) which are registered with Bangladesh Securities and Exchange Commission (BSEC). Through DFIM Circular No.04 dated 30 March 2016, Bangladesh Bank allows such investment.

On November 24, 2015, Bangladesh Bank issued a similar circular allowing the commercial banks to invest in such funds.

FI should follow the following guideline while investing in the non-listed special purpose funds:

1. The aggregate investment in such funds made by any FI shall not exceed 50 percent of its paid up capital.

2. The investment in such a single fund made by any FI shall not exceed 10 percent of its paid up capital or 20 percent of that particular fund, whichever is lower. [Read more…] about NBFI can invest in Alternative Investment Fund – Bangladesh Bank

Presence of shareholder is mandatory for share transfer – RJSC

Physical presence of the shareholder is now compulsory for transfer of shares. By a circular on March 27, 2016, the Registrar of Joint Stock Companies and Firms (RJSC) impose this condition. Main goal of the circular is to prevent fraud relating to transfer of shares.

The circular does not provide any guideline for corporate shareholders or foreigner shareholders. How these types of shareholders will transfer their shares is not clear from the circular.

Though RJSC issued this circular now, in practice, they imposed this condition for the last several months. We are already facing trouble with transferring share of some of our foreign and corporate clients.

You may read this article to learn more about transfer of shares of a Bangladeshi company.

All power producers must become member of BIPPA

All power producers in Bangladesh including Independent Power Producers (IPP), Small Independent Power Producers (SIPP) and Commercial Power Producers (CPP) must become member of Bangladesh Independent Power Producers’ Association (BIPPA). Ministry of Commerce on February 25, 2016, issued a circular (স্মারক নম্বর-বাম/টিও-২/এ-৪০/২০১৪/৫৭) in this regard.

Bangladesh Independent Power Producers’ Association (BIPPA) is a trade organization formed under the Trade Organizations Ordinance, 1961. Section 13 of the Trade Organizations Ordinance, 1961 empowers the government to impose such compulsory membership of a trade organization. No timeline is mentioned in the circular. If you are a power producer, you should become a member of BIPPA without any delay.

If any power producer does not become a member of BIPPA, it may be fined by the government.

Import Policy Order 2015-18 introduced

After almost 6 months delay, Bangladesh government on February 15, 2016, introduced the Import Policy Order 2015-18. The previous policy expired on 30th June 2015 (however it was valid till the Import Policy Order 2015-18 is issued).

The new policy puts emphasis on imported raw materials for export-oriented industries. It will now be easier to import such materials.

Country of origin must be mentioned on all products, product packaging or containers. However for importing coal, cotton, aluminum raw materials and export-oriented garment and industrial raw materials, country of origin is not required. Nuclear radiation test is mandatory for imported milk, dairy, edible oil, vegetable seeds and cereal products, etc. (food products). Such certification should also be submitted to the Customs authorities.

[Read more…] about Import Policy Order 2015-18 introduced