Issuing a new directives on Friday, the central bank made its prior approval mandatory for the promoters holding stake of over 2 percent of the paid-up capital for transferring full or partial rights to others. [break]
While banks and financial institutions (BFIs) have been allowed to take decisions on rights transfer in case of promoters holding stake worth less than 2 percent of the paid-up capital, the central bank, however, said they should give first priority to the persons belonging to the same group or subsidiaries.
“They should opt to transfer the rights to the existing promoters only if rights transfer to persons within the group or subsidiaries become impossible,” states the directives.
The NRB has directed the BFIs to make sure that the persons buying the promoters´ rights shares produce sources of income and tax clearance certificates.
The promoters are allowed to transfer rights to other persons or institutions only in case the existing promoters denied to take over their rights shares.
“The persons or institutions thus getting hold of promoters´ rights share will be inducted as the promoter representing the groups or subsidiary from which it got the rights,” says the directives.
NRB has also said that the persons or firms proposed for such rights transfer should qualify through fit and proper test that the central bank has set for the promoter shareholders.
“They should not be black listed at Credit Information Bureau and should submit statements disclosing their sources of income along with tax clearance certificate for the previous fiscal year,” it added.
Likewise, the directives categorically restricts the board directors, chief executive, auditor, secretary and persons involved in auditing from acquiring such rights transfer during their tenure at the office and also within a year of the end of their direct involvement in the institution.
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