BSEC Lifts Share Trading Approval Rules for 'Z' Category Directors

In a significant regulatory development in Dhaka, Bangladesh, the Bangladesh Securities and Exchange Commission (BSEC) has officially removed the mandatory requirement for prior approval regarding share and equity security transactions and transfers by entrepreneurs and directors of Z category companies. This major policy shift was formally adopted during the 1027th commission meeting of the BSEC, which took place on the first of September.

Previously, entrepreneurs and directors associated with Z category companies faced rigorous procedural hurdles when attempting to trade or transfer their designated shares and equity securities. Under the newly enacted directives formulated by the Bangladesh Securities and Exchange Commission, these specific individuals no longer need to secure prior administrative clearance from the regulatory body before executing such share transactions.

Alongside the relaxation of rules for Z category directors, the regulatory commission has also established a definitive operational timeframe governing the disbursement of financial returns to international investors. Moving forward, the declared dividends belonging to foreign shareholders must be successfully remitted within a precise window following specific fiscal and taxation verifications.

According to the updated regulatory stipulations announced by the BSEC during its meeting in Dhaka, the mandated deadline requires that foreign shareholder dividends be transmitted strictly within thirty days of obtaining the critical double taxation avoidance certificate issued by the National Board of Revenue. Furthermore, the complete remittance process must be strictly concluded within the confines of the relevant corresponding financial year.