Kathmandu. Nepal Rastra Bank (NRB) has given 5 years to the shareholders to maintain the fixed shareholding limit. The central bank has amended the integrated directive issued in the name of banks and financial institutions and fixed the time limit for holding shares.
As per the current directive, investors can invest only 15 percent of the paid-up capital in any bank or financial institution and up to 1 percent of the paid-up capital in other banks and financial institutions. Similarly, in case of ‘D’ class institutions, the ceiling has been fixed at 25 percent and 10 percent respectively. The said investment limit will not be applicable when the Government of Nepal, Rastra Bank and the banks and financial institutions invest in subsidiary companies as promoters.
Similarly, promoter shareholders holding more than the aforementioned limit are prohibited from participating in the right shares to be issued by the concerned institutions by withholding cash dividends and bonus shares until they exceed the prescribed limit. In addition, such banks and financial institutions may be directed to merge or merge. Provided that, this directive shall not be deemed to have prevented the transfer of right share rights to the concerned shareholders if they so desire.
The amended directive has added a provision that the shareholders who have held more than the specified limit before the issuance of this directive should bring it within the limit set by Ashad end, 2087. The NRB has made it clear that action will be taken if the limit is not maintained even after that date.
