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Industrial Finance Corporation Act, 1948


4. Share capital and share-holders.

  1. The authorized capital of the Corporation shall be ten crores of rupees divided Into twenty thousand fully paid-up shares of five thousand rupees each of which ten thousand shares of the total value of five crores of rupees shall be issued in the first instance, and the remaining shares may be issued with the sanction of the Central Government FROM time to time as and when the Corporation may deem fit.

1A.     3*[On and FROM the commencement of the Industrial Finance Corporation (Amendment) Act, 1972, (74 of 1972.) the authorised capital of the Corporation shall stand increased to twenty crores of rupees, divided INTO forty thousand shares of five thousand rupees each, and the shares representing the capital so increased may be issued, with the sanction of the Central Government, as and when the Corporation may deem fit.]

1B.      4*[On or after the commencement of the Industrial Finance Corporation (Amendment) Act, 1982 (2 of 1982), the authorised capital of the Corporation may be increased to such amount not exceeding one hundred crores of rupees as the Central Government may, FROM time to time, by notification in the Official Gazette, fix.

1C.      The authorised capital increased under sub-section (1B) shall be divided INTO such number of shares of five thousand rupees each as may be necessary and the shares representing the capital so increased may be issued with the sanction of the Central Government as and when the Corporation may deem fit."]

1D.      5*[On or after the commencement of the Industrial Finance Corporation (Amendment) Act, 1986 (50 of 1986), the authorised capital of the Corporation may be increased to such amount not exceeding two hundred and fifty crores of rupees as the Central Government may, FROM time to time, by notification in the Official Gazette, fix.

1E.      The authorised capital increased under sub-section (1D) shall be divided INTO such number of shares of five thousand rupees each a may be necessary and the shares representing the capital so increased may be issued with the sanction of the Central Government as and when the Corporation may deem fit."]

  1. Of the capital issued in the first instance, the Central Government and the Reserve Bank shall each subscribe for two thousand shares.

  2. On application made before such date as may be notified by the Central Government in the Official Gazette in this behalf, scheduled banks may subscribe for two thousand five hundred shares, and insurance companies, investment trusts and other like financial institutions for two thousand five hundred shares, and co-operative banks for one thousand shares of the Corporation:
    Provided that no institution shall be allotted more than ten percent of the shares reserved for the class of institutions to which it belongs.

  1. Omitted by Act 2 of 1982, s. 2 (w.e.f. 12.3.1982).

  2. Subs. by Act 28 of 1955, s. 4, for "acquire and hold".

  3. Ins. by Act 74 of 1972, s. 3.4. Ins. by Act 2 of 1982 s. 3 (w.e.f. 12.3.1982).'

  4. Ins. by Act 50 of 1986, s. 3 (w.e.f. 2.2.1987).

  1. The allotment of shares to the applicants mentioned in sub - section (3) shall be made by the Board in accordance with the regulations made in this behalf.1* * * * * *(7) Shares of the Corporation shall not be transferable except to 2*[the Development Bank], 3*[the Reserve Bank], any scheduled bank, any insurance company, any investment trust or any other like financial institution or any co-operative bank in accordance with the regulations made in this behalf. 4*[(8) 5*[In this section and in section 4A] the expression "insurance companies" or "insurance company" includes the Life Insurance Corporation of India established under section 3 of the Life Insurance Corporation Act, 1956 (31 of 1956) 6*, the General Insurance Corporation of India formed and registered under the Companies Act, 1956 (1 of 1956), its subsidiaries and such other institution or institutions dealing with general insurance business as may be notified by the Central Government in the Official Gazette in this behalf"]
     



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