Cenbank raises individual sukuk investment limit by 15% to boost participation
The previous investment limit for individual customers in the fund was 5% of the total allocation
The Bangladesh Bank has increased the investment limit for individual customers in the Shariah-compliant Islamic bond, sukuk, to 20% of the total allocation.
The raised limit also applies to provident funds and deposit insurance schemes.
Previously, they were allowed to invest up to 5%.
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The central bank issued a circular in this regard on Wednesday (22 January), directing all bank managing directors to implement the new policy which aims to encourage greater participation and increase investment opportunities for investors.
A sukuk is an Islamic financial instrument, similar to a bond in Western financial terms, that complies with Sharia law. Sukuk offers direct asset ownership interest, while bonds are indirect interest-bearing debt obligations.
According to the circular, the allocation for Shariah-based banks, financial institutions, and insurance companies has been adjusted to 70%, down from the previous 85%.
Meanwhile, Islamic branches and windows of scheduled banks retained their 10% allocation.
Additionally, along with the aforementioned three categories, all scheduled banks, financial institutions, and insurance companies will be eligible to participate in the sukuk auction, the circular stated.
