The Bangladesh Bank has significantly relaxed rules for foreign investors to sell shares and repatriate capital.

A circular, issued on Monday, said foreign investors can now repatriate up to Tk 1 billion from share sales without prior approval from the Bangladesh Bank, while the previous limit was Tk 100 million.

While the repatriation limit has been raised, the central bank maintained that an asset valuation report remains mandatory.

The transaction must be supported by a formal agreement between the buyer and the seller, it added.

The new guidelines specify that the sale price must reflect a fair market value.

To determine the share value, the circular upheld the use of Net Asset Value (NAV) based on audited financial statements, market price, or the Discounted Cash Flow (DCF) method.

“A good environment for foreign investment is created when investors can proceed with confidence at every stage,” said Ashik Chowdhury, chief executive officer of the Bangladesh Investment Development Authority (BIDA), in a statement.

He added that by reducing approval complexities and simplifying the exit process, Bangladesh is moving toward a more attractive investment landscape.

Commercial banks will be able to complete share transfer procedures within 45 days if all documents are in order.

The sale proceeds may then be repatriated within five working days.

Banks will also have to submit a report on the transactions to Bangladesh Bank within 14 days after the process is completed.