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NBFI BOARD OF DIRECTORS

Only one nominated director from per co, org: BB

Staff Correspondent
26 Apr 2023 21:31:21 | Update: 26 Apr 2023 21:40:33
Only one nominated director from per co, org: BB
Bangladesh Bank — File Photo

From now on, the boards of directors of non-banking financial institutions (NBFIs) cannot have more than one nominated director from a company or organisation.

The Department of Financial Institutions and Markets (DFIM) of the Bangladesh Bank issued a circular in this regard on Wednesday. The directive issued under the Financial Institutions Act 1993 came into effect immediately.

In the circular clarifying the guidelines for the appointment of directors in financial institutions, the central bank stated that more than one nominated director cannot be appointed on behalf of any organisation or company in the board of directors of any financial institution.

Besides, when a person is a director of a financial institution, no other person nominated by him as a related party can be appointed as a nominated director on the board of directors of that financial institution.

Also, no other person can be appointed as a nominated director on behalf of a natural person shareholder on the board of directors of a financial institution.

All other instructions given earlier will remain unchanged, the circular said.

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