Foreign investors need to fill a Customer Account Information Form with BRAC EPL Stock Brokerage Ltd 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 Bloomberg. Trade confirmation will be sent to the investors via email and/or fax following execution of the order.
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 (T+1) selling of shares. For Z-category shares, the settlement period is T+3 days (buy settlement). However, when a stock is traded in the spot market, the settlement period is T+0 day (sell settlement) for all categories of share and T+1 for buy settlement. The settlement process is done mutually by the brokerage house (BRAC EPL Stock Brokerage Limited) and the custodian bank at DVP (Delivery VS Payment).
From BRAC EPL Stock Brokerage side, there is only one fee/charge - trade commission (market charges inclusive). There are 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 and corporate access support.
Foreign Investors also need to take into account the relevant tax associated with trading in the Dhaka Stock Exchange. Foreign institutional investors only need to pay 20% tax on cash dividend, deducted at source. The rate is 30% for foreign individuals.