7. Section 12 of the principal enactment is hereby amended as follows :-
| (1) in subsection (1) of that section -
| | (i) by the repeal of paragraph (c) thereof, and the substitution therefor of the following paragraph:
| | | "(c) for a licensed commercial bank to acquire the business or part of the business of another licensed commercial bank or a licensed specialised bank or of any branch of another licensed commercial bank or of a branch of a licensed specialised bank;"; |
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| | (ii) by the repeal of paragraph (d) thereof and the re-lettering of paragraph (e) as paragraph (d) thereof; | | |
| | (iii) by the addition, immediately after the relettered paragraph (d) of that subsection, of the following paragraph:-
| | | "(e) for the merger or consolidation of a licensed commercial bank or a branch thereof with any other licensed commercial bank or a licensed specialised bank."; |
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| (2) by the insertion immediately after subsection (1) thereof, of the following new subsections:-
| | "(1A). Application for approval of an acquisition under paragraph (c) of subsection (1) or a merger or consolidation under paragraph (e) of subsection (1) shall include -
| | | (a) a statement of the nature of the acquisition or merger or consolidation, as the case may be; |
| (b) a copy of the proposed agreement, if any, under which the acquisition or merger or consolidation, as the case may be, is to be effected; and |
| (c) such other particulars and documents as may be prescribed. |
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| | (1B) An approval under paragraph (c) of subsection (1), or paragraph (e) of subsection (1), or subsection (lc) shall not be granted, unless the Monetary Board is satisfied that such acquisition or merger or consolidation is in the interest of promotion of a safe, sound and stable banking system, and the fair competition prevailing in the banking industry. When granting approval for an acquisition under subsection (lc), to an individual or a corporate body, the Monetary Board shall, in determining whether such individual or the directors of such corporate body as the case may be, are fit and proper persons, have regard to the criteria set out in subsection (2) of section 42. | | |
| | (lC)
| | | (a) An individual, partnership or corporate body shall not, either directly or indirectly or through a nominee or acting in concert with any other individual, partnership or corporate body, acquire a material interest in a licensed commercial bank incorporated or established within Sri Lanka by or under any written law without the prior written approval of the Monetary Board given with the concurrence of the Minister. |
| (b) Without prejudice to the generality of subsection (2) of this section, approval under paragraph (a) of this subsection may be granted subject to terms and conditions as the Monetary Board may deem fit. |
| (c) A licensed commercial bank shall not enter in the register of members of the bank as the holder of shares of the bank, the name of any individual, partnership, corporate body, or nominee who or which has contravened the provisions of paragraph (a). |
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Sri Lanka Consolidated Acts