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.]
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