The Industrial Finance Corporation Act, 1948
4A. Transfer of shares and increase of capital.
- On such date8* as the Central Government may, by notification in the Official Gazette, appoint
- all shares of the Corporation held by the Central Government and the Reserve Bank shall stand transferred to and vest in the Development Bank and as compensation there for the Development Bank shall pay to the Central Government and to the Reserve Bank respectively the face value of the shares held by that Government and by that Bank;
- the capital issued by the Corporation shall be increased by such number of shares as the Central Government may specify in this behalf and all such shares shall stand allotted to and be subscribed by the Development Bank, so however that after such increases the Development Bank holds not less than fifty per cent. of the paid-up capital of the Corporation.
- If and when the remaining shares in the capital of the Corporation, or any part thereof, are issued, such further shares shall be offered to the holders of the shares of the Corporation in proportion,
- Sub-sections (5) and (6) omitted by Act 18 of 1964, s. 38 and Sch. II (w.e.f. 1-8-1964).
- Subs. by s. 38 and Sch. II, ibid., for "the Central Government, the Reserve Bank" (w.e.f. 1-8-1964).
- Ins. by Act 74 of 1972, s. 3.4. Ins. by Act 66 of 1960, s. 3.5. Subs. by Act 2 of 1982, S. 3 (w.e.f. 12.3.1982).6. Ins. by s. 3 ibid. (w.e.f. 12-3-1982).7. Ins. by Act 18 of 1964, S. 38 and Sch. II (w.e.f. 1-7-1964).8. 1-8-1964 vide Notification No. S.O. 2662, dated 29-7-1964, see Gazette of India, Extraordinary, Part II, sec. 3(ii), p. 643.41.as nearly as circumstances admit, to the capital paid-up on those shares at the date of such further issue:
1*[Provided that such holders shall have the right to renounce the shares so offered to them in favour of any scheduled bank, any insurance company, any investment trust or any other like financial institution or any co-operative bank, whether or not any such institution is a shareholder:
Provided further that if any such holder does not accept the shares so offered or does not exercise the right of renunciation in respect of any such shares in favour of any institution referred to in the preceding proviso within the time fixed there for, the Board may allot such shares to any such institution with the concurrence of the Development Bank: Provided also that"] if any such shares remain un allotted, they shall be subscribed for by the Development Bank.]