Investment Process Summary
Foreign investors need to fill a Customer Account Information Form with BRAC EPL Stock Brokerage 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. 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.
After opening the respective accounts, foreign investors can trade directly with BRAC EPL Stock Brokerage Ltd. They can give buy/sale order to BRAC EPL Stock Brokerage through email and/or fax or through phone. Trade confirmation will be sent to the investors via email and/or fax following execution of the order.
The settlement process - transfer of share and cash - is done mutually by BRAC EPL Stock Brokerage and the custodian bank at DVP (Delivery VS Payment). The settlement period varies with the category of shares - (T+9) days for Z-category shares and (T+3) days for all other categories (A, B, G and N category). However when a stock is traded in the spot market, the settlement period is T+0 day for all categories of share.
From BRAC EPL Stock Brokerage side, there is only one fee/charge - trade commission, set at maximum 1% on total trade value, with prime rates applicable for prime clients. There is no account opening fees or any other fees. Moreover foreign investors will get a number of facilities from BRAC EPL Stock Brokerage which includes top quality research report and proprietary index prepared and maintained by BRAC EPL Research.
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.