Question
Under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, what is the restriction on shareholding by a company in a corresponding new bank (nationalised bank)?
Solution
The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 provides that no company shall hold or acquire shares in a corresponding new bank such that its aggregate investment exceeds the percentage not being more than 20% of the paid-up capital as specified by the Central Government by notification in the Official Gazette. This restriction ensures that no single corporate entity can acquire a dominant stake in a nationalised bank. The Central Government holds a majority stake in all corresponding new banks established under this Act.
More Other Laws and Acts Questions
- Where is the headquarter of Bureau of Indian Standards (BIS) located?
- Provisions as to the Administration of Tribal Areas as to Assam, Meghalaya, Tripura and Mizoram is in which schedule of the Constitution of India?
- According to the Bharatiya Nyaya Sanhita, 2023 what does petty organized crime mean?
- A husband forces sexual intercourse upon his 20-year-old wife against her will. Under Section 63 Exception 2 of BNS, what is the legal position?
- In cases instituted otherwise than on police report, Section 267 requires the Magistrate to:
- Which of the following is not a valid defense in an action for tort?
- Where debentures are issued by a company, the company shall create a debenture redemption reserve account_______________
- Section 5 is titled as:
- The duration of House of People is_________________
- According to the principle of indemnification in partnership law, what obligation does a partner have if they commit fraud in the conduct of the firm's bus...
Relevant for Exams:
