Holder, who was recently announced as one of the 15 cricketers to be offered contracts by the WICB was picked by the Quetta Gladiators in the PSL player draft.
However, after failing to obtain the NOC from the WICB, Holder took to twitter to confirm the news of his inability to participate in the 2016 PSL.
Carole Beckford who is the marketing and communications manager of the WICB stated that Holder has an obligation to play domestic cricket in West Indies as a retained player.
"The WICB has created the window for its retained players to participate in the Indian Premier League, and the Caribbean Premier League,” Beckford said.
"The captain is among the retained players and has an obligation to participate in the domestic competitions.”
The chief executive of the WICB, Michael Muirhead also confirmed that the board has the rights to deny NOC to play in overseas leagues as per the terms of the new contracts signed by the players.
"He (Jason Holder) is a retained player.
"So it gives us a right to say to a retained player, if you request a NOC in a time, that we have something geared towards the development of West Indies cricket, and then we have the right to say no to him," Muirhead told ESPNCricinfo.
Muirhead also added that as the captain of the Barbados team, Holder’s participation in the premier 50-over tournament will be crucial to promote a sense of unity in the domestic setup.
"We have our premier 50-over competition going on now and it is going to be played at the same time as the league.
"He is the captain of the Barbados team, which wants him to play.
"We need him in the region. It promotes cricket.
"It sends a sense of unity. It sends the right message."
The inaugural edition of the PSL will kick-start with the opening game between Islamabad United and Quetta Gladiators in Dubai on 4th February.
© Cricket World 2016