Section 13: Restriction on commission, brokerage, discount, etc., on sale of shares.
The Banking Regulation Act, 1949Central Act · Act 10 of 1949
Notwithstanding anything to the contrary contained in [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 [price at which the said shares are issued].
[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.]
Restriction on commission, brokerage, discount, etc., on sale of shares.
Jurisdiction
Central
Status
In force as published by the source
Judgments citing it
3
How this provision has been amended
Taken from the footnotes printed with the provision by the source. Where a footnote names the amending instrument, it is quoted as printed.
substituted, Act 95 of 1956. . 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).
substituted, Act 4 of 2013. . Subs. by Act 4 of 2013, s. 5, for "paid-up value of the said shares" (w.e.f. 18-1-2013).
inserted. . Ins. by s. 5, ibid. (w.e.f. 18-1-2013).
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