I wouldn't know a BSA clutch from a bar of soap, but I'll give my 2 pennethworth. !
The band around a Norton clutch is intended to keep oil out of the clutch plates.
As long as they are not flooded in oil, they work perfectly satisfactorily without the band at all.
A trace of oil on the plates is not the disaster it once was.
Norton clutches came in 3, 4 and 5 plate versions.
A 750cc would need the 5 plate version if you expect the clutch not to slip.
A 350cc might get away with 3 plates, but you'd have to be able to assemble and adjust it OK.
Binding when you do up the retaining nut usually means the clutch basket is rubbing on the bushing in the high gear bizzo,
maybe even pulled up hard against it. You may need some sort of washer or spacer to hold it out slightly further on the shaft.
Could be the clutch is machined slightly differently or deeper than the original. This MUST be corrected.
How is the chain alignment. ?
Hopethishelps.