KATHMANDU, June 18: Nepal Rastra Bank (NRB) has introduced stricter disclosure requirements for transactions involving promoters’ shares of banks and financial institutions (BFIs), mandating detailed information on buyers and sellers when the transaction exceeds five percent of a company’s paid-up capital or Rs 2.5 million.
Issuing a circular on Thursday, the central bank said the new provision aims to enhance transparency in the purchase and transfer of promoter shares. “While purchasing or transferring promoter shares worth more than five percent of the paid-up capital or Rs 2.5 million, once or repeatedly, it is mandatory to disclose details of the actual owner and beneficiary,” the NRB stated.
Under the new rules, individuals must submit their name, address, family details, and a self-declaration confirming beneficial ownership. They are also required to disclose whether they have been involved in any criminal offense, litigation, investigation, or administrative action in Nepal or abroad. Information on outstanding government arrears, revenue liabilities, and loan blacklist status must also be provided.
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The directive further requires disclosure of potential conflicts of interest, assets held abroad, and details of beneficial ownership. Individuals must submit records of past work experience, organizational affiliations, responsibilities, awards, punishments, and financial conduct.
For shareholder organizations, the beneficial owner or beneficiary who directly or indirectly holds 15 percent or more of the investment — individually, jointly, or collectively — must also be disclosed.
NRB clarified that the provision applies not only to new investors but also to existing shareholders who currently hold more than five percent or Rs 2.5 million in promoter shares of BFIs.
