2015 B,<lu'\'KlNG AMfiNDl'v!ENT "32 No.12 Restrictions on purchase and pledging of shares in banking institutions and controlling companies (1) No banking or controlling company shall(a) (b) purchase its own shares or the shares of any associate; or make any loan or advance on the security of its own shares or the shares of any associate. (2) Except with the prior approval oft he Registrar (which approval shall not be unreasonably withheld), no person holding a significant interest in a banking institution or controlling company (as defined in section 15B(l)) shall pledge, hypothecate or otherwise encumber any shares in a banking institution or controlling company if the encumbrance may res-ult in a transfer of shares or voting rights in the institution or company equal to or exceeding ten per centum of the shares or voting rights in the institution or company. (3) Subject to section 73, a banking institution or controlling company which or person who contravenes subsection (1) or (2) shall(a) be liable for a civil penalty of fifty United States dollars (or the maximum monetary figure specified from time to time for level four, whichever is the lesser amount) for each day the institution, company or person remains in default, not exceeding a period of one hundred and eighty-one days; and (b) if the institution, company or person continues to be in default after the period specified in paragraph (a), be guilty of an offence and liable on conviction(i) in the case of a banking institution or controlling companyA. to a fine not exceeding level ten; and B. to a fine not exceeding level seven or to imprisonment for a period not exceeding two years or to both such fine and such imprisonment in the case of every director or member of the board or governing body of the institution; (ii) in the case of an individual other than a director or member referred to in subparagraph (i)B, to a fine not exceeding level seven or to imprisonment for a period not exceeding two years or to both such fine and such imprisonment. 32A Special purpose vehicles (1) Except with the written approval of the Reserve Bank and subject to such terms and conditions as the Reserve Bank may specify, no banking institution or controlling company shall form or maintain a special purpose vehicle. (2) The formation of a special purpose vehicle in contravention of subsection (1) shall be void. (3) Any transaction canied out by or on behalf of a special purpose vehicle formed by a banking institution or controlling company shall be deemed to have been canied out by the institution or company that formed it. 237