Kathmandu. Promoter shareholders of banks and financial institutions are required to bring their shares within the limit set by the Nepal Rastra Bank within about 5 years. Nepal Rastra Bank (NRB) issued a new directive on Monday.

Similarly, investors can invest up to 15 percent of the paid-up capital of a single bank or financial institution and up to 1 percent of the paid-up capital in other BFIs. In the case of Group ‘D’ institutions, the ceiling has been fixed at 25 percent and 10 percent respectively. The investment limit will not be applicable when the Government of Nepal, Nepal Rastra Bank and the banks and financial institutions invest in subsidiary companies.

Shareholders holding more than this limit set by the Rastra Bank will have to bring it within the limit by Ashad end, 2087. Action will be taken if the border is not maintained after that date.

In the case of promoter shareholders holding more than the limit of shares, cash dividends and bonus shares to be distributed by the concerned banks and financial institutions have been prohibited from participating in the right shares to be issued by the concerned institution until the limit is exceeded.

Directive may be issued to ÷amalgamate such banks and financial institutions. However, this directive does not preclude the concerned shareholders from transferring the right share rights if they wish.