Sukuk can become an alternative investment sector, what is required

People seek safe avenues for investing their hard-earned savings. In this regard, alongside savings certificates, fixed deposit receipts (FDRs), and bonds, Sukuk may emerge as a new alternative investment option.

To support this objective, Bangladesh Bank aims to make Sukuk more attractive to general customers.

Bangladesh Bank has simplified the investment process in Sukuk for both individual and institutional investors.

From now on, investors will be able to open a Sukuk Investor ID through banks or financial institutions by submitting the required documents and paying the prescribed fees.

Recently, the Debt Management Department of Bangladesh Bank issued a circular outlining the new guidelines, applicable charges, and the documents required for opening a Sukuk investment account. Investors must open these accounts through banks or financial institutions.

Various documents are required to open a Sukuk Investor ID –

1. Application form

2. Bank account information

3. National Identity Card or passport

4. Photograph

5. TIN certificate (where applicable)

6. Contact information

7. Nominee’s photograph and details, including the nominee’s National Identity Card, passport, or birth registration certificate

1. Application form

2. Investor account information

3. Photograph and passport

4. TIN certificate or tax certificate

5. Contact information

6. Nominee’s photograph, passport, National Identity Card, or birth registration certificate

1. Application form

2. Bank account information

3. Registration form

4. Licence issued by the relevant authority (where applicable)

5. Memorandum and articles of association

6. Board resolution

7. TIN certificate

8. Registered address

9. Detailed contact information of the relevant individuals

10. Photograph and identification documents of the authorised signatory

1. Application form

2. Bank account information

3. Registration or approval certificate

4. Trust deed (where applicable)

5. Resolution of the Board of Trustees or minutes of the meeting

6. Certificate from the National Board of Revenue (NBR), where applicable

7. Contact information of the authorised signatory

8. Photograph and National Identity Card of the authorised signatory

1. Application form

2. Bank account information

3. Trade licence

4. Partnership deed (for partnership businesses)

5. TIN certificate

6. National Identity Cards of the owner or partners

7. Contact information of the owner or partners

8. Nominee’s photograph and details (for sole proprietorships)

9. Nominee’s National Identity Card or passport (for sole proprietorships)

1. Application form

2. Investor’s bank account information

3. Memorandum and Articles of Association (where applicable)

4. Partnership deed for partnership businesses (where applicable)

5. Resolution of the Board of Trustees or minutes of meetings (where applicable)

6. TIN certificate or tax certificate

7. Registered address

Under the new guidelines, Bangladesh Bank has clearly specified the fee structure, including VAT, for Sukuk investments.

For individual investors, the maximum charge for opening an Investor ID, participating in the primary auction, and annual maintenance has been fixed at Tk 200 for each service.

For institutional investors, the maximum charge for each of these services has been set at Tk 500.

In addition, investors must pay a fee of Tk 100 for each transaction in the secondary market.

Investors will receive one income tax certificate free of charge each year. However, for any additional certificates, the applicable fee will be a maximum of Tk 200 for individual investors and Tk 500 for institutional investors.

Authorities have kept several services completely free of charge for the convenience of investors. Banks may not charge any fee for the payment of profit, rent, or principal amounts.

In addition, investors will not have to pay any fee for obtaining investment amount or holding reports, nor for closing a Sukuk Investor ID.

Investors must submit applications through the “Government Securities Investment Window” of the relevant bank or financial institution.

Bangladesh Bank will open these Investor IDs through the Shariah Security Module maintained by the central bank.

Individual investors must submit the prescribed application form, bank account information, National Identity Card or passport, photograph, e-TIN certificate (where applicable), and nominee information with photograph.

Bangladeshi expatriates and foreign investors must provide details of their resident foreign currency or local currency “Taka”.

Institutions, limited companies, trusts, or provident funds must submit registration certificates, minutes of board meetings, and the required documents of authorised signatories.