Regulatory Alerts2020-07-30
Added · Updated
DOS Circular Letter No. 24: Policy Regarding Investment in Equity Shares of Private Infrastructure Companies under DOS Circular no-03/2019 by the Scheduled banks
The Department of Off-site Supervision mandates that scheduled banks investing in equity shares of private infrastructure companies must ensure the investee company is listed on the capital market within one year of the first subscription, with a transition period of six months for existing investments. The circular requires that shares be listed via book-building at a price not lower than the average investment price, prohibits listing more than 5% of paid-up capital in the first year, and allows the use of convertible bonds or similar instruments to facilitate listing. Additionally, a special reserve fund must be established to protect investor interests during the unlisted period, and funds from this fund can only be used for cash dividends or debt repayment with prior approval.
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