BAFIA approves conversion of promoter shares within 10 years

Finance Committee of Parliament has approved the agenda of Bank and Financial Institution Act (Bafia) of converting promoter share in to public share after 10 years of Banl and Financial Insitutions (BFIs) establishment. From now onwards Bank and Financial Institutions (BFIs) can only sell their promoter shares after 10 years. A meeting held today (Mangsir 6, 2073) has approved the above mentioned agendas. Finance Minister Krishna Bahadur Mahara, Governor Chiranjibi Nepal and Secretary Rajan Khanal were present in the meeting for the final approval. Also the meeting has approved that from now onwards , any members of parliament cannot be a BOD member of any BFIs and also need to have certain educational qualifications. The Chairman, Directors, and CEO of BFIs will hold the same position for more than two tenures. Independent director will now have working tenure of two years. Microfinance companies cannot use ‘Bank’ in their company title rather they can only use ‘ Microfinance Company’ in their title.