NBFI board chiefs can’t hold post in subsidiary

The Bangladesh Bank today barred the chairman of any non-bank financial institution (NBFI) along with the heads of executive, audit and risk management committees from holding any post of its subsidiary or foundation.

The persons who are now holding such posts will have to resign or get exemption from the positions by June 30, according to a BB notice.

The shareholder directors along with nominated and representative ones, who have spent one year and above in the posts, will not be allowed to serve their NBFIs on a regular or contractual basis. The persons who are now serving the NBFIs will have to resign or get exemption by June 30.

The NBFIs have also been instructed to inform the matter to the BB within the first week of July.

The banking regulator in the circular said the move would ensure discipline in the NBFIs.

The same instructions were given to the banks as well yesterday.