46.
| (1) The Monetary Board may give directions as it may deem necessary to all or any licensed commercial bank specifying
| | (a) the class or classes of advances which may or may commercial not be made by such bank ; | | |
| | (b) the margins to be maintained in respect of secured advances ; | | |
| | (c) the maximum amount of accommodation which, having regard to the paid-up capital, reserves and deposits of such licensed commercial bank and other relevant considerations, as may be made by such bank to any one company, public corporation, firm, association of persons or individuals, or in the aggregate, to an individual, his close relations or a company or firm in which he has a substantial interest; | | |
| | (d) the maximum percentage of the share capital in a licensed commercial bank incorporated in Sri Lanka
| | | (i) held by a company, an incorporated body, or an individual; |
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| (2) A direction issued under subsection (1) shall have effect notwithstanding that such direction will require a licensed commercial bank to effect a change in the nature or amount of any of its assets or liabilities, whether acquired or incurred before or after the date of the coming into operation of this Act, provided that a licensed commercial bank which is required to so effect a change, is afforded a period of twelve months from the date of such direction or such longer period as may be granted by the Monetary Board in which to comply with that requirement. |
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| (3) In order to comply with a direction issued to it under paragraph (d) of sub-section (1), a licensed commercial bank may direct a person holding shares in such bank to reduce the number of shares held by such person in such bank, whether such shares were acquired by such person before or after the appointed date, within, such period as may be specified in such direction; and it shall be the duty of such person to comply with such direction. |
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| (4) A person who fails to comply with a direction given to him under sub-section (3) shall be guilty of an offence under this Act, and shall on conviction after summary trial by a Magistrate be liable to imprisonment for a term not exceeding eighteen months or to a fine not exceeding one thousand rupees or to both, such imprisonment and fine. |
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Sri Lanka Consolidated Acts