Bangladesh Bank (BB) yesterday made some changes to the repatriation of sale proceeds of non-resident owned equity in unlisted companies purchased by residents, reports BSS.
"It has now been decided that in such cases Bangladesh Bank will accept fair value of the shares as on the date of sale based on appropriate combination of three valuation approaches (viz. net asset value approach, market value approach and discounted cash flow approach) depending on the nature of the company,” the central bank said in a circular. According to the Guidelines for Foreign Exchange Transactions-2009, the sale proceeds of non-resident equity investment in unlisted companies and private limited companies are repatriable abroad with prior approval from BB to the extent of net asset value of the shares as on the date of sales, based on latest audited financial statements.
The central bank in its latest circular directed all the authorised dealers of foreign exchanges to submit the application for repatriation of sale proceeds of shares to Foreign Exchange Investment Department at head office of BB with a valuation certificate of shares issued by a merchant banker licensed by Bangladesh Securities and Exchange Commission (BSEC) or a chartered accountant experienced in company valuation.
Full set of audited financial statements of the company will have to be submitted to BB along with application for 
remittance approval, the circular said.