The Industrial Finance Corporation Act, 1948
4. Share capital and share-holders.
- 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."]
- Of the capital issued in the first instance, the Central
Government and the Reserve Bank shall each subscribe for two thousand shares.
- 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.
- Omitted by Act 2 of 1982, s. 2 (w.e.f. 12.3.1982).
- Subs. by Act 28 of 1955, s.
4, for "acquire and hold".
- Ins. by Act 74 of 1972, s. 3.4. Ins. by Act 2 of 1982 s. 3 (w.e.f.
12.3.1982).'
- Ins. by Act 50 of 1986, s. 3 (w.e.f. 2.2.1987).
- 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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