Due to reform initiatives and simplified investment processes, foreign investors’ participation in the country’s stock market is increasing. In the first eight months of the current year, total foreign investor transactions increased by 37.6 percent compared to the same period last year. During the same January-August period, the volume of foreign transactions reached approximately 94 percent of last year’s total annual transactions.
According to Dhaka Stock Exchange (DSE) data, total foreign investor transactions in the first eight months of 2026 amounted to BDT 3,701 crore 28 lakh 97 thousand 898. In the same period of 2025, this volume was BDT 2,687 crore 39 lakh 47 thousand 809. This indicates an increase of BDT 1,013 crore 89 lakh 50 thousand, or 37.6 percent, in foreign transactions over a one-year period.
Stakeholders believe that various market reform initiatives are playing a positive role in increasing foreign investor participation. Preparations to upgrade the stock market from a frontier market to an emerging market, communication with international index providers, simplifying foreign investment processes, and initiatives to reduce transaction settlement times are sending positive signals to investors.
DSE Managing Director Nujhat Anwar stated that no single DSE initiative is solely responsible for the increase in foreign transactions. A combination of factors—preparations to upgrade the market from frontier to emerging, communication with relevant institutions including MSCI, simplification of Bangladesh Bank’s Non-Resident Investors Taka Account (NITA) rules, and initiatives to move towards a T+1 settlement system—has collectively sent a positive message to foreign investors.
She mentioned that a complexity in the NITA system for foreign portfolio investors has recently been simplified. Previously, after investing in Bangladesh, the financial accounts for each transaction had to be managed through the NITA account. When this issue was raised by the DSE to the relevant authorities, Bangladesh Bank simplified the rule.
Under the new system, foreign investors will no longer need to account for each transaction separately; instead, they can complete the necessary accounting when repatriating funds from Bangladesh. Stakeholders believe this has simplified the foreign investment process compared to before.
Additionally, the initiative to move towards a T+1 settlement system is also sending a positive message to international investors. Nujhat Anwar believes that professional management, ensuring transparency and accountability in the stock market, along with regular communication with foreign investors, are all contributing to the increased foreign investment.
According to DSE data, while there have been significant fluctuations in foreign transactions since the beginning of the current year (2026), the overall trend has been upward. In January, foreign transactions amounted to BDT 377 crore 23 lakh 83 thousand 466. This increased to BDT 663 crore 27 lakh 80 thousand 795 in February.
Transactions then decreased to BDT 272 crore 3 lakh 57 thousand 980 in March and BDT 175 crore 15 lakh 87 thousand 460 in April. However, May saw a significant surge in foreign transactions, reaching BDT 831 crore 69 lakh 90 thousand 771, which was the highest among the first eight months of the current year.
Subsequently, foreign transactions in June were BDT 540 crore 16 lakh 61 thousand 470, and in July, BDT 523 crore 14 lakh 52 thousand 966. In August, it slightly decreased to BDT 318 crore 57 lakh 27 thousand 991.
On the other hand, in the first eight months of 2025, the volume of foreign transactions was BDT 2,687 crore 39 lakh 47 thousand 809. In January of that year, transactions were BDT 181 crore 81 lakh 5 thousand 105. While it increased to BDT 264 crore 13 lakh 99 thousand 262 in February, it dropped to BDT 171 crore 96 lakh 17 thousand 787 in March.
Transactions increased again in April and May. In April, transactions were BDT 426 crore 94 lakh 1 thousand 298, and in May, BDT 506 crore 74 lakh 19 thousand 142. This was the highest among the first eight months of that year.
Although foreign transactions decreased to BDT 285 crore 30 lakh 77 thousand 619 in June, they rose to BDT 491 crore 43 lakh 66 thousand 217 in July. In August, transactions stood at BDT 371 crore 56 lakh 3 thousand 548.
DSE data indicates that total foreign investor transactions for the entire year of 2025 amounted to BDT 3,920 crore 42 lakh 20 thousand 21. In contrast, in the first eight months of 2026 alone, transactions reached BDT 3,701 crore 28 lakh 97 thousand 898, which is approximately 94 percent of the total transactions for the entire previous year.
Source: BSS