Promoters get one more year to slash their shareholding
KATHMANDU, Sept 29:
Nepal Rastra Bank (NRB) has pledged additional one year to the promoters of banks and financial institutions (BFIs) to limit their promoter share holding within 15 percent. They can now comply with such a provision by the end of this fiscal year.
Issuing a directive five years ago, NRB had asked promoters of BFIs to limit their shareholding at 15 percent in any one BFI and also instructed them not to hold more than 1 percent share in other BFIs by 2010/11. The directive was issued with a view to restrict influence of promoters maintaining substantial cross-holding in multiple institutions.
“We have extended the span for compliance by a year,” said NRB Spokesperson Bhaskar Mani Gyawali. He, however, added that the central bank would not show such flexibility yet again.
As an indication of its firm stance, the central bank has even asked the BFIs to furnish it their plan of selling excess shares held by the promoters.
BFIs will need to submit their plans to the central bank by October 17, said Gyawali.
Source: Republica
Nepal Rastra Bank (NRB) has pledged additional one year to the promoters of banks and financial institutions (BFIs) to limit their promoter share holding within 15 percent. They can now comply with such a provision by the end of this fiscal year.
Issuing a directive five years ago, NRB had asked promoters of BFIs to limit their shareholding at 15 percent in any one BFI and also instructed them not to hold more than 1 percent share in other BFIs by 2010/11. The directive was issued with a view to restrict influence of promoters maintaining substantial cross-holding in multiple institutions.
“We have extended the span for compliance by a year,” said NRB Spokesperson Bhaskar Mani Gyawali. He, however, added that the central bank would not show such flexibility yet again.
As an indication of its firm stance, the central bank has even asked the BFIs to furnish it their plan of selling excess shares held by the promoters.
BFIs will need to submit their plans to the central bank by October 17, said Gyawali.
Source: Republica
