Section 5
Authorised share capital.
The National Bank for Financing Infrastructure and Development Act, 2021
About this Act
An Act to establish the National Bank for Financing Infrastructure and Development to support the development of longterm non-recourse infrastructure financing in India including development of the bonds and derivatives markets necessary for infrastructure financing and to carry on the business of financing infrastructure and for matters connected therewith or incidental thereto.
(1) The authorised share capital of the Institution shall be one hundred
thousand crore rupees divided into ten thousand crores of fully paid-up shares of ten rupees each:
Provided that the Board may increase or reduce the nominal or face value of the shares, and divide the
authorised capital into such denomination as it may decide:
Provided further that the Board may, in consultation with the Central Government, increase or reduce the authorised capital subject to the shares in all cases being fully paid-up shares.
(2) The issued share capital of the Institution shall, on such date as may be notified by the Central Government, stand allotted to the Central Government.
(3) Shares of the Institution may be held by the Central Government, multilateral institutions, sovereign wealth funds, pension funds, insurers, financial institutions, banks, and any such institution as may be prescribed:
Provided that the Central Government shall hold at least twenty-six per cent. of the shares of the Institution at all times.
(4) The Board may, with the prior approval of the Central Government, reduce its share capital, including by way of buy-back of shares.
Provided further that the Board may, in consultation with the Central Government, increase or reduce the authorised capital subject to the shares in all cases being fully paid-up shares.
(2) The issued share capital of the Institution shall, on such date as may be notified by the Central Government, stand allotted to the Central Government.
(3) Shares of the Institution may be held by the Central Government, multilateral institutions, sovereign wealth funds, pension funds, insurers, financial institutions, banks, and any such institution as may be prescribed:
Provided that the Central Government shall hold at least twenty-six per cent. of the shares of the Institution at all times.
(4) The Board may, with the prior approval of the Central Government, reduce its share capital, including by way of buy-back of shares.