Act Number: 38

Act Name: The State Bank of India (Subsidiary Banks) Act, 1959

Year: 1959

Enactment Date: 1959-09-10

Long Title: An Act to provide for the formation of certain Government or Government associated banks as subsidiaries of the State Bank of India and for the constitution, management and control of the subsidiary banks so formed, and for matters connected therewith, or incidental thereto.

Ministry: Ministry of Finance

Department: Department of Financial Services

Section 18: Transferability of shares.
    (1) Save as otherwise provided in sub-section (2), the shares of a subsidiary bank shall be freely transferable.
     (2) Nothing contained in sub-section (1) shall entitle the State Bank to transfer any shares held by it in any subsidiary bank such transfer will result in reducing the shares held by it to less than 1 [fifty-one per cent. of the issued capital consisting of equity shares] of that subsidiary bank.
Notes:
1. Subs. by Act 30 of 2007, s. 8, for "fifty-five per cent. of the issued capital" (w.e.f. 9-7-2007).
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