NBFIs’ top brass can remain directors of subsidiaries until Dec

Chairmen of non-bank financial institutions (NBFIs) along with heads of different committees of such intuitions will be able to retain their positions as directors and members of associate subsidiaries of the same institution till the end of this year, a central bank circular said on Tuesday.

The announcement by the Bangladesh Bank comes weeks after the regulator instructed bank and NBFI employees in such directorship roles to resign or get exempted by 30 June this year.

After the vacancy, the central bank should be informed within seven working days, the bank said in a circular on 12 May.

The circular further instructed that if any person serves as a shareholder director or nominated director or independent director of a financial institution for one year, he will never be appointed in that financial institution on a regular or contract basis after the maturity or retirement.

However, if there is anyone with such an appointment, the post will have to be vacated by 31 July and the central bank has to be informed within the next seven working days.

In a notice issued on 1 June, the Bangladesh Bank permitted the directors of banks to hold the posts till June next year.