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In order to become the director of a Non-bank financial institute (NBFI), the candidate needs to have at least 10 years of management, business or professional experience, Bangladesh Bank said in a circular.
Less than 10 years of experience would not be acceptable in this case. Moreover, loan defaulters also cannot hold the position, according to a circular regarding compliance with the Financial Institutions Act, 1993 in the appointment of directors issued by the central bank’s Department of Financial Institutions and Markets (DFIM) on Monday.
The circular says that according to the law, the directors of NBFIs must hold minimum shares as per the regulations of the Bangladesh Securities and Exchange Commission. According to the Securities Act, a minimum of 2 per cent shareholding is required in the case of listed companies.
A person who is at present or has been in the last five years an external auditor, legal advisor, consultant, salaried employee or any otherwise held responsibility in a financial institution cannot be appointed to the board of the concerned financial institution.
In case the person has been convicted of a criminal offence, or the civil or criminal court has any adverse observation or comment in the judgement about the related person or institution, the person cannot be a director.
If there is evidence of involvement in forgery, financial crime or other illegal activities in the investigation or inspection report of Bangladesh Bank or any organisation of the government regarding the nominated person or the nominating organisation, he/she will be considered ineligible for the directorship.
Similarly, if the nominated person or the nominating organisation has been convicted of violating the rules, regulations or rules of any regulatory body related to the financial sector, he/she cannot become a director.
