Banks and financial institutions are now allowed to sell shares of companies listed on the securities market after just 45 days of investment. The central bank issued a directive on Thursday reducing the previous holding period from 6 months to only 45 days.
Until now, banks were required to hold their investments in the capital market for at least 6 months. Following Thursday’s directive, banks and financial institutions can now invest with a plan to sell shares or debentures after 45 days.
According to the directive, investment in shares and debentures of listed organized institutions in the securities market must be for a period of more than 45 days.
In addition, the central bank has introduced a provision that prohibits any form of short-term investment in shares and debentures of organized institutions through any mechanism.
The central bank has also stipulated that banks and financial institutions must include policy-related provisions in their investment policies and procedures. These procedures should cover the objectives and strategies of investment, the types of instruments such as shares and debentures in which investment can be made, and the classification of these instruments into banking book and trading book.
 (1) (3).png)
