Provisions relating to Restriction on dealing in securities of banks or financial institutions

Provisions relating to Restriction on dealing in securities of banks or financial institutions :

(1) No director, chief executive, auditor or secretary of a bank or financial institution, or any person directly involved in the management and accounting functions of a bank or financial institution shall sell, purchase or pledge, gift or exchange, or cause to be purchased, pledged, gifted or exchanged, the securities of the concerned bank or financial institution or those of its subsidiary company under his or her own name or in the name of his or her family or in the name of any firm, company or body controlled by him or her or by his or her family control while he or she holds such office or until at least one year from the date of his or her retirement from that office. Provided that this restriction shall not be applicable in the case of the newly issued shares.

(2) If any person does any act in contravention of Sub-section (1), the concerned bank or financial institution shall forfeit such securities.

(3) The Board may sell and dispose of the securities forfeited pursuant to Sub-section (2) in such manner as it may think appropriate.