Bangladesh Bank on Monday said any person, organisation and company would have to take prior approval from the central bank if they hold jointly or individually more than 5 per cent shares of a bank company. The BB issued a circular to managing directors and chief executive officers of all banks saying that individual person, organisation and company would have to follow the directives in line with 14 (kha) article under Bank Company Act (Amendment) 1991.
A person, organisation and company will take the prior approval from the central bank through their bank concerned.
Organisations and companies will have to nominate a person who will hold the shares of a bank company on behalf of them, the circular said.
The person will have to submit the approval letter of the organisations and companies to the central bank.
The shareholders, who will hold more than five per cent shares of a bank, will have to fill up the central bank’s form to take prior approval from the BB.
The person, organisation and company will have to inform the central bank on how they will own the shares of the bank company.
The circular said that the shareholders generally owned shares of a bank company by settling transaction through the capital market or direct purchase of the shares from the bank or through placement.
The organisations which provide custodial services to the clients will not have to take prior approval from the central bank if their clients collectively hold more than five per cent shares of the bank company.
The brokerage houses usually play custodial service provider for the clients.
The BB circular, however, said that any individual client, who would purchase more than five per cent share of the bank company through custodial service provider, would have to take prior approval from the central bank.
The individual, company and organisation, who have already owned more than five per cent shares, will not have to take approval from the central bank.
But, the banks will have to inform the central bank about the type of shareholders within one month after issuing date of the circular, the BB said.
According to the bank company act, any person, organisation or company can hold jointly or individually maximum 10 per cent shares of a scheduled bank.
-With New Age input
