Bangladesh Bank’s Foreign Exchange Policy Department, via a circular on transactions relating to foreign direct investment in Bangladesh, has noted that the dividend payable to foreign shareholders may be credited to their FC accounts maintained in Bangladesh provided, Authorized Dealers satisfy themselves that the funds in equivalent foreign currency has arrived in terms of paragraph 31, chapter 10 of GFET, reporting of which has been made; while crediting FC accounts, the transactions are treated as outward remittances and accordingly TM Form procedures are followed and encashment of balances held in FC accounts are treated as inward remittances for bonafide local disbursements. Declared dividend may be used for reinvestment in Bangladesh through purchase of shares in existing companies’ and/or other companies according to the instructions of the circular.