Bangladesh, Nov. 4 -- Bangladesh Bank has relaxed rules allowing companies to issue preference shares to non-resident Bangladeshis without BB's approval if dividends paid by the companies do not exceed 5 per cent.

The revised rules also simplify procedures for redeeming preference shares and converting them into ordinary shares, potentially making it easier for local companies to mobilise foreign investment.

The central bank issued a circular on Tuesday, outlining the responsibilities of issuing companies, non-resident investors and authorised dealer (AD) banks involved in such transactions.

Issuing companies will have to submit a report to the central bank's Foreign Exchange Investment Department after issuing the shares, ensuring re...