Financial Times

GoldQuest asked to reduce stake in NDB
NDB Bank has granted three months from August to the multilevel marketing company, GoldQuest to reduce its 13 percent stake in the bank to 10 percent, in accordance with the new amendments to the Banking Act, a bank official said.

The new amendments in section 12 (1C) prohibits any individual, company or a partnership to hold more than 10 percent in a licensed commercial bank without prior approval from the regulator’s Monetary Board.

In August, NDB Bank became a licensed commercial bank when it merged with National Development Bank. A NDB Bank official said that the bank wrote to GoldQuest on August 1 to reduce its shareholding. “They have not responded to us as yet,” he said.

Meanwhile, Janashakthi Insurance, which holds 15 percent in NDB, protested through their lawyers when the bank instructed them to reduce it to 10 percent, after which NDB got an injunction preventing the former from buying any more shares.

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