Individuals involved in financial irregularities cannot be managing director of NBFIs: Cenbank
Loan defaulters, tax defaulters, and individuals who stopped paying their creditors or have been declared bankrupt by a court, also cannot be appointed as managing director of NBFIs.
If an individual is involved in financial irregularities of any kind during their tenure at a bank or a financial institution, they cannot be appointed or reappointed as managing director of non-bank financial institutions (NBFIs).
As per a Bangladesh Bank circular issued today (25 March), loan defaulters, tax defaulters, and individuals who stopped paying their creditors or have been declared bankrupt by a court, also cannot be managing director of NBFIs.
The central bank sent the circular to the chairmen and managing directors of all NBFIs, stipulating the rules regarding the appointment of managing directors of NBFIs and their responsibilities.
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According to the circular, in order to be appointed as the managing director, one must be a person who is not convicted by a criminal court or involved in forgery or financial crimes.
Among the qualifications, it states that the individual should not have violated the rules and regulations of any regulatory authority, or been associated with any establishment whose registration or licence has been cancelled or has been decommissioned.
