Section 13
Restriction on commission, brokerage, discount, etc., on sale of shares.
The Banking Regulation Act, 1949
About this Act
An Act to consolidate and amend the law relating to banking.
Notwithstanding
anything to the contrary contained in 1[sections 76 and 79 of the Companies Act, 1956] (1 of 1956), no
banking company shall pay out directly or indirectly by way of commission, brokerage, discount or
remuneration in any form in respect of any shares issued by it, any amount exceeding in the aggregate
two and one-half per cent. of the 2[price at which the said shares are issued].
3[Explanation.--For the removal of doubts, it is hereby declared that the expression "price at which the said shares are issued" shall include amount or value of premium on such shares.]
3[Explanation.--For the removal of doubts, it is hereby declared that the expression "price at which the said shares are issued" shall include amount or value of premium on such shares.]
Notes
1. Subs. by Act 95 of 1956, s. 14 and Sch. I, for "sections 105 and 105A of the Indian Companies Act, 1913 (7 of 1913)
(w.e.f. 14-1-1957).
2. Subs. by Act 4 of 2013, s. 5, for "paid-up value of the said shares" (w.e.f. 18-1-2013).
3. Ins. by s. 5, ibid. (w.e.f. 18-1-2013).
2. Subs. by Act 4 of 2013, s. 5, for "paid-up value of the said shares" (w.e.f. 18-1-2013).
3. Ins. by s. 5, ibid. (w.e.f. 18-1-2013).