Investing in Bhutan

Bhutan's only securities exchange (Royal Securities Exchange of Bhutan Limited) is the country's only securities exchange and also performs the functions of a central depository and clearing house. The capital market operates under the framework of the RMA Act 2010 and the Financial Services Act 2011. Depending on the product, the central bank and monetary authority (Royal Monetary Authority), the RSEB, the corporate regulator (Corporate Regulatory Authority) and the ministry responsible for industry, commerce and employment (Ministry of Industry, Commerce & Employment) are responsible for supervision, registration, exchange operations or corporate matters. The reviewed market overview covered approximately Nu 50.3 billion in market capitalization and companies in sectors including banking, insurance, manufacturing, tourism, publishing and distribution. The limited market breadth can lead to stronger price fluctuations, few tradable counterparties and limited diversification. Retail investors can trade listed shares and offered corporate or government debt securities. Commercial papers are usually short-term corporate investments; published offers included, for example, Nu 324 million from Bhutan Carbide & Chemicals Ltd., Nu 80 million from Bhutan Tourism Corporation Ltd. and Nu 50 million from Bhutan Polymers Company Ltd. In some offers, the face value of a commercial paper was Nu 100,000. Availability, price, maturity and trading volume vary by issue. A commercial paper is not capital-protected: in addition to price and liquidity risk, there is a risk that the issuing company will not pay interest or principal. To access the exchange, an investor needs a securities or broker account with a licensed broker and a link to a bank account. Typical information includes a citizenship identity card (Citizenship Identity Card), a Taxpayer Number, bank details, a central-depository code and contact and address information. The RSEB provides market information, listed securities, debt securities and corporate announcements; trading may take place online or by mobile through RSEB systems. Before placing an order, investors should check the broker's licence, settlement, custody, dividend and general-meeting notices, and any possible buyback offers. The identity and anti-money-laundering review may require additional information. Bhutan has a regulated fund framework under the fund-management rules (Fund Management Rules & Regulations 2019). A fund management company requires an RMA licence, and the launch, prospectus and advertising of a fund require approval from the relevant Authority. A fund manager may not guarantee a return and may not lend against fund assets. A reliable public directory showing a broad offering for retail investors was not established in the reviewed sources. Before investing, the currently approved product, net asset value, management and transaction fees, redemption periods, payout conditions and any possible lock-up period should therefore be checked in writing. Equity crowdfunding is another formal option. Bhutan's equity-crowdfunding platform (Bhutan Crowdfunding) is an RMA-licensed platform of the RSEB under the Crowdfunding Rules & Regulations 2019. It may offer interests in start-ups, new businesses and cottage and small industries (Cottage and Small Industries). The minimum investment is Nu 10 and the retail-investor limit is Nu 100,000 per company; no corresponding upper limit is set for institutional investors. The campaign follows an all-or-nothing principle. If the target is not reached, the investor receives the money back. An initial investment may be withdrawn within 48 hours. If a campaign succeeds, the investor becomes a shareholder. The platform fee is non-refundable and non-negotiable. Projects may fail, remain illiquid, provide incomplete information or later dilute the investment. Donation and reward campaigns are not investments in securities. Direct company investments and foreign direct investment (FDI) follow different rules from a small listed portfolio. The foreign direct investment rules (FDI Rules & Regulations 2025) have applied since 18 July 2025. Foreign investment is generally possible in all sectors except those on the negative list. After the FDI registration certificate, the company is incorporated under the Companies Act 2016. Foreign investors generally need at least a 20 percent interest, while foreign institutional investors need at least 10 percent. For other activities, depending on the sector, minimum project costs of Nu 50 million in manufacturing or Nu 25 million in services and a maximum foreign ownership of 74 percent apply. The sectoral annexes may permit higher ownership percentages of up to 100 percent for priority activities. A venture-capital fund for impact-oriented start-ups is permitted. These rules concern qualified strategic or institutional investments and are not a general substitute for an easily accessible retail-investor product. Foreign investors may invest in convertible currency; INR is also provided for Indian investors. A contribution must be made no later than three months after the earlier deadline arising from commencement of business or fulfilment of the relevant incorporation requirement. Repatriation of capital, capital gains and dividends follows the applicable foreign-exchange rules, with dividends requiring an application to the RMA and a shareholder resolution. A transfer of shares in a public FDI company through the exchange may additionally require MoICE approval. Real-estate transactions are on the FDI negative list. Direct ownership of real estate or acquisition at an auction can be a tangible asset, but it is not a liquid, broadly diversified investment product. The RSEB supports e-auctions for real estate, machinery and other assets. No publicly evidenced REIT offering was identified. Nor was an ETF market or a general standard-access route through foreign retail brokers established. Bhutanese citizens require prior RMA approval under the 2026 foreign-exchange rules (Foreign Exchange Regulations 2026) if they want to acquire, hold or sell foreign securities. An investment in a company or an office abroad may also require approval. A foreign securities app therefore does not automatically provide lawful access. Foreign-exchange law, anti-money-laundering requirements, tax issues and the repatriation of money must be clarified individually before such an investment. Cryptocurrencies are currently not a normal retail-investor route. According to the RMA position of 30 April 2025, mining and exchange trading are permitted only for companies registered in Gelephu Mindfulness City (GMC) or their business partners within that framework. Funding crypto-trading accounts through domestic banks remains restricted for general trading. There are also high risks of price loss, custody problems, fraud, regulatory changes and total loss. For every investment, expected return is only one consideration alongside dividends, valuation, maturity, credit quality, fees, taxes, foreign-exchange risk and the possibility of selling. Specific costs may include broker commissions, exchange, clearing and custody fees, fund fees, issuance and settlement costs, crowdfunding fees, currency conversion and tax and legal costs. A single current retail-fee table and a general tax rate were not established in the reviewed official sources. Before committing, investors should therefore obtain a written cost overview and the current RMA, RSEB, CRA or MoICE notices for the relevant product.