The central bank has barred any non-banking financial institution (NBFI) director having at least one year or above of directorship from becoming its contractual or regular employee.
Any person who serves as shareholding director or nominated director or independent director of any NBFI for at least one year will not be entitled to be appointed to any post of the same financial institution, according to a notification issued by the Bangladesh Bank (BB) on Thursday.
If any director of an NBFI now holds such positions, he or she has to resign by July 31 this year, the notification adds.
Under the fresh provisions, the management of the NBFI concerned needs to inform the central bank within seven working days of the following month after making the post vacant.
Besides, chairmen of three top policy-making committees of any NBFI will not be able to hold any post of its subsidiary company or foundation.
"If any chairperson of the committees -- executive, audit or risk management of NBFI -- now holds such positions, he or she has to resign by June 30 this year," the BB says in the order.
The management of NBFI concerned needs to inform the BB within seven working days of the following month after making the post vacant, it notes.
"We've taken the measures aiming to ensure good governance in the country's NBFI sector," a BB senior official told the FE while explaining the main objective of the notification.
Earlier on Wednesday, the central bank issued a similar notification for all the scheduled banks.
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