Financial Tribune – In line with efforts to help promote corporate governance and protect the rights of bank depositors and shareholders, the Central Bank of Iran has announced restrictions on ownership of banks’ shares.
Pointing to a bylaw sent to banks and credit institutions, the CBI governor Abdolnasser Hemmati said ownership of more than 33% of a bank’s shares by one person is prohibited and owning 10-33% of a bank’s shares is subject to approval from the CBI.
As per rules ratified by the Majlis in April, owning shares of banks up to 10% of the total stake does not CBI permission.
In an Instagram post on Friday, Hemmati warned major shareholders to decide the fate of their shares above the set limit and get rid of the surplus by the time the current fiscal year is out (March 19, 2020).
“If ownership of shares crosses the legal ceiling, the dividend on surplus shares and rights issues will be subject to 100% tax,” Hemmati noted.