Why Bangladesh is an exciting investing opportunity to foreign investor?
Account Opening Requirements:
Foreign investors need to fill a Customer Account Information Form with Mika Securities Limited. The form is different for individual investors and institutional investors. Foreign investors need to send the form (hard copy) to the brokerage house, duly filled and signed by authorized personnel. They also need to attach photocopy of other required documents (hard copy), stated below:
For institutional investors
In order to avail the share trading and custodial services, you are required to fill out and sign the following:
For Individual Investors/Company Account Documents Required
B/O Account Opening:
Foreign investors need to fill a Customer Account Information Form with Mika Securities Limited and send the form (hard copy) to the brokerage house, duly filled and signed by authorized personnel, together with photocopy of other required documents. They also need to open a Custodian Account with any custodian bank in Bangladesh, we can also introduce you to one of our custodian banking partners. Together with BO account opening, the custodian bank will take care of other account opening, such as Cash Account (or NITA A/C), Securities A/C and F/C Account.
Following is a list of custodian banks:
Hong Kong and Shanghai Banking Corporation
Standard Chartered Bank
Fees & Charges
There is only one fee/charge from the brokerage side. Investors only need to pay the trading commission on their buy/sale order. Mika Securities Limited do charges account opening fee of BDT. 450/= including tax and other regulatory charges. The commission fee is set at maximum 0.50% on total trade value with prime rates applicable for prime clients.
To apply for an IPO, foreign investors need to contact the custodian bank. The custodian bank will carry out the process of applying for IPO allotments.
The settlement period varies with the category of shares. For any category other than Z-category, that is A-category, B-category, G-category and N-category, the settlement period is T+2 days (transaction date + two working days) for both buying and selling of shares. For Z-category shares, the settlement period is T+9 days. However when a stock is traded in the spot market, the settlement period is T+0 day for all categories of share. The settlement process is done mutually by the brokerage house (Mika Securities Ltd.) and the custodian bank at DVP (Delivery VS Payment).
Foreign Investors also need to take into account the relevant tax associated with trading in the Dhaka Stock Exchange. Foreign individual investors only need to pay 25% tax on cash dividend, deducted at source. The rate is 20% for institutional investors. Institutional investors are also charged with capital gain tax – 10% is charged on profit portion only, deducted during repatriation of money.
*Deducted at source
Information for Fund Deposit
Deposit directly from your City Bank City Touch online. All you have to do is log into your City Touch account or any other online bank to deposit directly from your bank account to ours.
Send EFT to the following Account:
Mika Securities Ltd.
The City Bank
Dhaka South, Principal Branch
Swift Code: CIBLBDDH
Phone: +880 2 9820561 Ext 333