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Foreign investors’ participation in Bangladesh’s capital market is rising as the authorities simplify investment procedures and introduce market reforms.
Foreign investors’ total transactions on the Dhaka Stock Exchange (DSE) reached Tk 3,701.29 crore in the first eight months of 2026, up 37.6 per cent from Tk 2,687.39 crore in the same period last year.
The transactions increased by Tk 1,013.90 crore year-on-year. The figure also represents nearly 94 per cent of foreign investors’ total transactions of Tk 3,920.42 crore recorded throughout 2025.
Market insiders said several reform measures are encouraging foreign participation. These include efforts to upgrade Bangladesh’s capital market from frontier to emerging market status, engagement with global index providers, easier investment procedures and plans to introduce a T+1 settlement system.
DSE Managing Director Nuzhat Anwar told BSS on Saturday that the rise was not driven by any single initiative.
She said preparations for the market upgrade, engagement with organisations such as MSCI, simplification of Bangladesh Bank rules for Non-resident Investors’ Taka Accounts (NITAs), and the proposed T+1 settlement system had together sent positive signals to foreign investors.
Bangladesh Bank has also eased a procedural issue related to NITA accounts, which foreign portfolio investors use to invest in the country.
Previously, funds in NITA accounts had to be accounted for separately for each transaction. Under the revised procedure, foreign investors can complete the required accounting when repatriating funds instead of making separate calculations for every transaction.
The change is expected to make investment easier for foreign investors.
Anwar said the proposed T+1 settlement system was another positive development for international investors. She added that the DSE was working to improve transparency, accountability and professional market management while maintaining regular communication with foreign investors.
Foreign transactions varied widely during the first eight months of 2026. They stood at Tk 377.24 crore in January and rose to Tk 663.28 crore in February before falling to Tk 272.04 crore in March and Tk 175.16 crore in April.
Transactions jumped to Tk 831.70 crore in May, the highest monthly figure during the period. They stood at Tk 540.17 crore in June, Tk 523.15 crore in July and Tk 318.57 crore in August.
In the first eight months of 2025, foreign transactions totalled Tk 2,687.39 crore. The full-year figure was Tk 3,920.42 crore.
The latest data show that foreign investors’ transactions in the first eight months of 2026 have already reached almost 94 per cent of last year’s full-year total.
