Regulatory Alerts2020-11-30 | Finance Business Act Directions No. 8 of 2020Maximum Percentage Limits of Share Capital of Licensed Finance Companies
The Monetary Board of the Central Bank of Sri Lanka issued directions under the Finance Business Act to impose maximum shareholding limits on Licensed Finance Companies. These rules require entities to reduce direct or indirect voting shareholdings to 75% by December 31, 2029, and further to 50% by December 31, 2033. Non-compliance triggers regulatory measures including dividend freezes, voting restrictions, and monetary penalties, with provisions for staggered reductions or exemptions in specific restructuring or stability scenarios.
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