Section 36, The Banking Act, 2019

(1) A bank or financial holding company shall not acquireor hold part of the share capital of any small or medium scale industry or agricultural enterprise without the prior written approval of the 56 57 Acquisition of shares in small and medium scale industries or other business. (2) Without prejudice to subsection (1), a bank or financial holding company may hold or acquire share capital of any small or medium scale industry or other business, subject to the approval of the Central Bank and to the following conditions- (a) the shareholding by the bank or financial holding company is in small or medium scale industry or agricultural enterprise; (b) the shareholding by the bank or financial holding company in any small or medium scale industry or agricultural enterprise shall not be more than 10% of the bank's or financial holding company's net own funds and shall not exceed 40% of the paid-up share capital of the company, the shares of which are acquired or held; or (c) the aggregate value of the equity participation of the bank or financial holding company in all non-financial institutions does not, at any time exceed 20% of its net own funds provided that a bank may hold shares acquired in the course of the satisfaction of any debt owed to it. (3) A bank or financial holding company shall within 21 days of the acquisition of any shareholding pursuant to this section give full particulars thereof to the Central Bank. (4) A bank or financial holding company who fails to comply with the provisions of this section is liable to an administrative penalty for each day during which the default continues. PART VIII - RESTRICTIONS ON LENDING