This May 2024 update covers regulatory changes from the Bangladesh Securities and Exchange Commission (BSEC) and Bangladesh Bank, introduced in response to conditions in the foreign currency and domestic stock markets.

BSEC revised the conditions for Z-category shares. Two consecutive years of net operating loss or negative operating cash flow no longer place a company in the Z category, and the accumulated loss test does not apply to companies that declared dividend from current profits in the last calendar year and held AGMs for all outstanding years. Companies that delay transferring unpaid dividends, unallotted rights or public subscription refunds to the Capital Market Stabilization Fund (CMSF) face a fine of 2% per month.

Bangladesh Bank issued the Guidelines for Bank/Financial Institution Amalgamation 2024, covering voluntary and forced mergers. It raised the all-in-cost ceiling on short-term trade finance to 4% over benchmark rates such as SOFR, from 3.5%, and introduced currency swaps with commercial banks, with Shariah banks transacting at spot rate on both legs. Other items include reduced export cash subsidy rates for 2023-24, the Offshore Banking Act 2024, settlement of imports against exports through escrow counter-trade arrangements, and removal of the cash reserve ratio requirement for offshore banking accounts.