Relaxation of the Consent Rule from Bangladesh Securities Exchange Commission:
Bangladesh Securities & Exchange Commission (BSEC) in October 2018 has passed a New Order whereby a Fully Foreign Owned ( hundred percent) Company will not be required to take prior consent from BSEC for issuing shares. Earlier, under the previous Order from BSEC, any Private Ltd. Company ( including foreign owned) whose paid up capital is or exceeds by new subscription a benchmark of Tk. 100 Million, would have needed to take consent from BSEC under the Capital Issue Rules 2001. This was not only time consuming but also created confusion to the foreign investors. However under the revised Order issued in October, 2018, if the foreign owned Company’s paid capital does not exceed Tk. 1,000 Million ( with the new allotment), BSEC’s consent will not be required. The Order reads as follows- No.
” Whereas, the Bangladesh Securities and Exchange Commission deems it appropriate to exempt fully foreign owned companies from certain provisions of the Securities and Exchange Ordinance, 1969 (XVII of 1969) ; Now, therefore, in exercise of the power conferred by section 2D of the Securities and Exchange Ordinance, 1969 (XVII of 1969), the Bangladesh Securities and Exchange Commission hereby grants exemption to any fully (hundred percent) foreign owned company whose total capital at any given time after making an issue of capital shall not exceed taka one thousand million subject to submission of the encashment certificate of such capital and payment of fee as applicable. ”