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INVESTOR’S GUIDEBANGLADESH ECONOMY IN BRIEFBangladesh has undergone rapid structural transformation from agriculture base towards manufacturing and services. The contribution of the agriculture sector to GDP has declined from 50 percent in 1972-73 to around 20 percent in 1999-2000. The agricultural sector is, however, still the main employment provider. Bangladesh has recorded impressive economic gains since the 1990s.Growth averaged 5.4% per year over the FY01-05 period, which has been the highest 5-year average since the country’s independence. Growth was underpinned by:
On the policy side, a good record on growth seems to have benefited from impressive macro stability. Inflation hasn’t touched double digits for almost two decades, while public and external debt situation is fairly comfortable. Saving and investment rates, currently at about 24%, are relatively high compared with other countries at similar income levels. The pace of human development, which is a key contributor to growth and includes progress in health, education and social protection, has surpassed that of most low income countries (LDCs).
[Bangladesh Country Overview 2006 –World Bank] FIVE YEARS INDEX & MARKET SUMMERY OF CSE
NON RESIDENT INVESTOR INFORMATION
NON RESIDENT BANGLADESHIA non-resident Bangladeshi is allowed to invest in stock market. In fact Non-resident Bangladeshi enjoy more facilities than local investors in primary market. A quota of 10% of the total amount of IPO is reserved for Non resident Bangladeshis (NRBs). Non resident Bangladeshis may apply either directly by enclosing a foreign demand draft drawn on a bank payable at Dhaka, or through a nominee by paying through a foreign currency deposit account maintained in Bangladesh. Investment in the secondary market can be made through a licensed stock broker and custodian bank . FOREIGNER / NON RESIDENT INVESTORIf you are a Foreigner or non Resident willing to invest in our market you can do so from outside Bangladesh through a CSE broker or a Portfolio Manager. For securities deposit and settlement obligation of eligible securities you may enter agreement with a Custodian Bank and open your BO account with Custody Participants (Lists of Custodian participant is available in CDBL website www.cdbl.bd.com. Custodian Banks in Bangladesh are also working as Custody Participants. LIST OF CUSTODIAN BANK LICENSED BY SEC
For money transaction you may use Non-resident Investor's Taka Account NITA account. This account is freely used to buy Bangladeshi shares/securities. The balances in the account are also freely remittable abroad in equivalent foreign exchange. The outward remittances will be reported to the Bangladesh Bank in the usual monthly returns along with the TM forms approved by the ADs in terms of this general authorization. The NITA can be operated by the account-holder himself or by a nominee, including the Authorised Dealer itself. [Top] TAX INFORMATION
I. TAXES IN THE PRIMARY MARKETThe following table gives details of stamp duties payable by issuing companies at the time of formation:
In addition , every issuing company must pay stamp duty of BDT 500 irrespective of their capital. Each stock certificate should be affixed with a stamp duty worth BDT 20. II. TAXES IN THE SECONDARY MARKET There is no stamp duty on transaction in exchanges listed securities in the secondary market III. WITHHOLDING TAX ON DIVIDEND AND INTERESTa. Payments to residents On dividend income exceeding BDT 25,000 tax at source of 10% is withheld. The same rate is applied to all interest income. b. Payments to non-residents If the shareholder is a company, at the rate applicable to a company and if the shareholder is a person other than a company, tax at source of 25% (the maximum rate) is withheld. IV. INCOME TAX:The rates are as follows: Personal Income Tax for 2005-2006
Tax rate of Company for 2005-2006
Note :15% tax rebate is granted on investments of 20% of total income or actual investment whichever is less. For investment in IPO shares the rebate applies up to a maximum investment of BDT 2,25,000. CAPITAL GAINS TAX: There is no capital gains tax for resident or non-residents in Bangladesh [Top] CSE INVESTORS INFORMATION CELL (IIC)In April 2002, CSE had developed a Cell named Investors’ Information Cell (IIC) dedicated exclusively to resolve any kind of query or produce any kind of information that an investor may require, related to the capital market. It receives queries and complaints over telephone, fax messages, e-mails, correspondences and physical visits. Since its inception the IIC has developed a good relation with the investors by responding to a number of queries and complaints from home and abroad. The Cell also resolved investor’s complaints against member firm and listed companies. It has earned the trust of investors as a Help Centre. Investors Information Cell Contact Address CSE Building, 1080, S.K. Mujib Road, Agrabad,
Chittagong. LODGING COMPLAINT AGAINST YOUR BROKERIf your broker fails to meet an obligation to you arising out of stock exchange transaction or if it is unable to fulfil its engagements to you have the right to lodge a complaint with the Exchange against such default . But the time limit for lodging complaint is within a period of 60 (sixty) days from the date when such default arose. The Defaulter’s Committee of CSE shall hear both the parties and recommend the Board for necessary action. The Board may declare a broker as Defaulter for its failure to meet the obligation towards the client within the time limit decided by the Board. A defaulter shall at once cease to be a member of the Exchange. You can contact our IIC for more information or Click here to lodge a complaint against a Member Company, if any [Top] EDUCATION & TRAINING FOR INVESTORSCSE conduct investment awareness program in full swing throughout each year and organise a number of seminars and workshops on issues relating to capital market and other market matters. It initiated to produce a TV program of 13 episode on share market to revive awareness among the investors. Our library facility provides easy access to the information on financial sector and on capital market for brokers, authorised representatives, students, and business executives. As an added facility internet access facilities is provided to the user of the library. [Top] IMPORTANT LINKSSecurities and Exchange Commission
(www.secbd.org) |
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