The Small Industries Development Bank of India Act, 1989
Administered Ministry: Ministry of Finance / Department of Financial Services
Section
Section 1 Short title, extent and commencement.
(1) This Act may be called the Small Industries Development Bank of India Act, 1989.
(2) It extends to the whole of India.
(3) It shall come into force on such date1 as the Central Government may, by notification, appoint and different dates may be appointed for different provisions of this Act.
(2) It extends to the whole of India.
(3) It shall come into force on such date1 as the Central Government may, by notification, appoint and different dates may be appointed for different provisions of this Act.
1. 7th March, 1990, vide notification No. S.O. 197(E), dated 7th March, 1990, see Gazette of India, Extraordinary, Part II, sec. 3(ii).
Section 2 Definitions.
In this Act, unless the context otherwise requires,--
(a) "Board" means the Board of directors of the Small Industries Development Bank of India referred to in section 5;
1 [(b) "chairman and managing director" means the chairman and managing director referred to in clause (a) of sub-section (1) of section 6;]
(c) "Court" means the High Court within the local limits of whose jurisdiction,--
(i) the defendant or respondent or, where there is more than one defendant or respondent, any one of them--
(1) has his registered office, or
(2) carries on the whole or part of his business,
at the time of commencement of any legal proceedings against him under this Act, or
(ii) the cause of action for such legal proceedings, wholly or in part, arises;
(d) "Development Bank" means the Industrial Development Bank of India established under section 3 of the Industrial Development Bank of India Act,1964 (18 of 1964);
(e) "Director" means a Director nominated under sub-section (1) of section 6 and includes the 2 [chairman and managing director and whole-time director];
(f) "export" means export from India of products or services of any industrial concern in small-scale sector;
3 [(fa) "General Insurance Corporation" means the General Insurance Corporation of India formed under section 9 of the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972);]
(g) "import" means import into India of services or goods including all materials, commodities and articles in a solid, liquid or gaseous state and all forms of energy for the use of any industrial concern in the small-scale sector;
4 [(h) "industrial concern in the small scale sector" means any concern engaged or to be engaged in,--
(i) the manufacture, preservation or processing of goods;
(ii) shipping;
(iii) mining including development of mines;
(iv) the hotel industry;
(v) the transport of passengers or goods by road or by water or by air or by ropeway or by lift;
(vi) the generation, storage or distribution of electricity or any other form of energy;
(vii) the maintenance, repair, testing or servicing of machinery or equipment of any description or vehicles or vessels or motor boats or trailers or tractors;
(viii) assembling, repairing or packing any article with the aid of machinery or power;
(ix) the setting up of, or development of, an industrial area or an industrial estate;
(x) fishing or providing shore facilities for fishing or maintenance thereof;
(xi) providing special or technical knowledge or other services for the promotion of industrial growth;
(xii) providing engineering, technical, financial, management, marketing or other services or facilities for industry;
(xiii) service industry such as altering, ornamenting, polishing, finishing, oiling, washing, cleaning or otherwise treating or adapting any article or substance with a view to its use, sale, transport, delivery or disposal;
(xiv) providing medical, health or other allied services;
(xv) providing services relating to information technology, telecommunication or electronics;
(xvi) leasing, sub-leasing or giving on hire-purchase of industrial plants, equipments, machinery or other assets including vehicles, ships and aircraft;
(xvii) such other activity as the Central Government may, having regard to the objects of this Act, by notification, specify in this behalf; or
(xviii) the research and development of any concept, technology, design, process or product whether in relation to any of the matters aforesaid, including any activities specified under sub-clause (xvii), or any other matter and which is regarded as a small-scale undertaking under section 11B of the Industries (Development and Regulation) Act, 1951(65 of 1951);
Explanation.--The expression "processing of goods" includes any art or process for producing, preparing or making an article by subjecting any material to a manual, mechanical, chemical, electrical or any other like operation.]
5 [(ha) "Life Insurance Corporation" means the Life Insurance Corporation of India established under section 3 of the Life Insurance Corporation Act, 1956 (31 of 1956);]
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(j) "National Small Industries Corporation" means the National Small Industries Corporation Limited registered under the Companies Act, 1956 (1 of 1956);
(k) "notification" means a notification published in the Official Gazette;
(l) "prescribed" means prescribed by regulations made under this Act;
7 [(la) "public sector bank" means the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980);]
8 (lb) "Reserve Bank" means the Reserve Bank of India constituted under the Reserve Bank of India Act, 1934 (2 of 1934);
(lc) "scheduled bank" means a bank for the time being included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934);]
(m) "Small Industries Bank" means the Small Industries Development Bank of India established under sub-section (1) of section 3;
(n) "State Small Industries Corporation" means a State Corporation, registered under the Companies Act, 1956 (1 of 1956), for small industries in a State;
(o) "State Financial Corporation" means a financial corporation established under section 3 or section 3A or an institution notified under section 46 of the State Financial Corporations Act, 1951 (63 of 1951);
(p) "State Industrial Development Corporation" means a State Corporation registered under the Companies Act, 1956 (1 of 1956) for the development of industries in a State;
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(a) "Board" means the Board of directors of the Small Industries Development Bank of India referred to in section 5;
1 [(b) "chairman and managing director" means the chairman and managing director referred to in clause (a) of sub-section (1) of section 6;]
(c) "Court" means the High Court within the local limits of whose jurisdiction,--
(i) the defendant or respondent or, where there is more than one defendant or respondent, any one of them--
(1) has his registered office, or
(2) carries on the whole or part of his business,
at the time of commencement of any legal proceedings against him under this Act, or
(ii) the cause of action for such legal proceedings, wholly or in part, arises;
(d) "Development Bank" means the Industrial Development Bank of India established under section 3 of the Industrial Development Bank of India Act,1964 (18 of 1964);
(e) "Director" means a Director nominated under sub-section (1) of section 6 and includes the 2 [chairman and managing director and whole-time director];
(f) "export" means export from India of products or services of any industrial concern in small-scale sector;
3 [(fa) "General Insurance Corporation" means the General Insurance Corporation of India formed under section 9 of the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972);]
(g) "import" means import into India of services or goods including all materials, commodities and articles in a solid, liquid or gaseous state and all forms of energy for the use of any industrial concern in the small-scale sector;
4 [(h) "industrial concern in the small scale sector" means any concern engaged or to be engaged in,--
(i) the manufacture, preservation or processing of goods;
(ii) shipping;
(iii) mining including development of mines;
(iv) the hotel industry;
(v) the transport of passengers or goods by road or by water or by air or by ropeway or by lift;
(vi) the generation, storage or distribution of electricity or any other form of energy;
(vii) the maintenance, repair, testing or servicing of machinery or equipment of any description or vehicles or vessels or motor boats or trailers or tractors;
(viii) assembling, repairing or packing any article with the aid of machinery or power;
(ix) the setting up of, or development of, an industrial area or an industrial estate;
(x) fishing or providing shore facilities for fishing or maintenance thereof;
(xi) providing special or technical knowledge or other services for the promotion of industrial growth;
(xii) providing engineering, technical, financial, management, marketing or other services or facilities for industry;
(xiii) service industry such as altering, ornamenting, polishing, finishing, oiling, washing, cleaning or otherwise treating or adapting any article or substance with a view to its use, sale, transport, delivery or disposal;
(xiv) providing medical, health or other allied services;
(xv) providing services relating to information technology, telecommunication or electronics;
(xvi) leasing, sub-leasing or giving on hire-purchase of industrial plants, equipments, machinery or other assets including vehicles, ships and aircraft;
(xvii) such other activity as the Central Government may, having regard to the objects of this Act, by notification, specify in this behalf; or
(xviii) the research and development of any concept, technology, design, process or product whether in relation to any of the matters aforesaid, including any activities specified under sub-clause (xvii), or any other matter and which is regarded as a small-scale undertaking under section 11B of the Industries (Development and Regulation) Act, 1951(65 of 1951);
Explanation.--The expression "processing of goods" includes any art or process for producing, preparing or making an article by subjecting any material to a manual, mechanical, chemical, electrical or any other like operation.]
5 [(ha) "Life Insurance Corporation" means the Life Insurance Corporation of India established under section 3 of the Life Insurance Corporation Act, 1956 (31 of 1956);]
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(j) "National Small Industries Corporation" means the National Small Industries Corporation Limited registered under the Companies Act, 1956 (1 of 1956);
(k) "notification" means a notification published in the Official Gazette;
(l) "prescribed" means prescribed by regulations made under this Act;
7 [(la) "public sector bank" means the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980);]
8 (lb) "Reserve Bank" means the Reserve Bank of India constituted under the Reserve Bank of India Act, 1934 (2 of 1934);
(lc) "scheduled bank" means a bank for the time being included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934);]
(m) "Small Industries Bank" means the Small Industries Development Bank of India established under sub-section (1) of section 3;
(n) "State Small Industries Corporation" means a State Corporation, registered under the Companies Act, 1956 (1 of 1956), for small industries in a State;
(o) "State Financial Corporation" means a financial corporation established under section 3 or section 3A or an institution notified under section 46 of the State Financial Corporations Act, 1951 (63 of 1951);
(p) "State Industrial Development Corporation" means a State Corporation registered under the Companies Act, 1956 (1 of 1956) for the development of industries in a State;
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1. Subs by Act 7 of 2000, s. 2, for clause (b) (w.e.f. 27-3-2000).
2. Subs, by s. 2, ibid., for "Managing Director" (w.e.f. 27-3-2000).
3. Ins. by s. 2, ibid. (w.e.f. 27-3-2000).
4. Subs. by Act 53 of 2003, s. 2, and The Schedule (w.e.f. 2-7-2004).
5. Ins. by Act 7 of 2000, s. 2 (w.e.f. 27-3-2000).
6. Clause (i) omitted by s. 2, ibid. (w.e.f. 27-3-2000).
7. Ins. by Act 7 of 2000, s. 2 (w.e.f. 27-3-2000).
8. Ins. by Act 53 of 2003, s. 12 and The Schedule (w.e.f. 2-7-2004).
9. Clause (q) omitted by s. 12 and The Schedule, ibid. (2-7-2004).
2. Subs, by s. 2, ibid., for "Managing Director" (w.e.f. 27-3-2000).
3. Ins. by s. 2, ibid. (w.e.f. 27-3-2000).
4. Subs. by Act 53 of 2003, s. 2, and The Schedule (w.e.f. 2-7-2004).
5. Ins. by Act 7 of 2000, s. 2 (w.e.f. 27-3-2000).
6. Clause (i) omitted by s. 2, ibid. (w.e.f. 27-3-2000).
7. Ins. by Act 7 of 2000, s. 2 (w.e.f. 27-3-2000).
8. Ins. by Act 53 of 2003, s. 12 and The Schedule (w.e.f. 2-7-2004).
9. Clause (q) omitted by s. 12 and The Schedule, ibid. (2-7-2004).
Section 3 Establishment and incorporation of Small Industries Development Bank of India.
(1) With effect from such date as the Central Government may, by notification, appoint, there shall be established, for the purposes of this Act, a corporation to be known as the Small Industries Development Bank of India.
(2) The Small Industries Bank shall be a body corporate with the name aforesaid having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property and to contract, and may, by that name, sue or be sued.
(3) The head office of the Small Industries Bank shall be at Lucknow or at such other place as the Central Government may, by notification, specify.
(4) The Small Industries Bank shall establish offices, branches or agencies at any place in or outside India.
(2) The Small Industries Bank shall be a body corporate with the name aforesaid having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property and to contract, and may, by that name, sue or be sued.
(3) The head office of the Small Industries Bank shall be at Lucknow or at such other place as the Central Government may, by notification, specify.
(4) The Small Industries Bank shall establish offices, branches or agencies at any place in or outside India.
Section 4 Authorised capital.
1[4. Authorised capital.--The authorised capital of the Small Industries Bank shall be one thousand crores of rupees divided into seventy-five crores fully paid-up equity shares of rupees ten each and twenty-five crores of fully paid-up redeemable preference shares of rupees ten each:
Provided that the Central Government may, on the recommendation of the Board, by notification, increase the authorised capital to an amount not exceeding two thousand crores of rupees consisting of such number of equity shares and redeemable preference shares as it may deem fit.]
Provided that the Central Government may, on the recommendation of the Board, by notification, increase the authorised capital to an amount not exceeding two thousand crores of rupees consisting of such number of equity shares and redeemable preference shares as it may deem fit.]
1. Subs. by Act 7 of 2000, s. 3, for sections 4 to 6 (w.e.f. 27-3-2000).
Section 4A Conversion of equity shares into redeemable preference shares.
1[4A. Conversion of equity shares into redeemable preference shares.--(1) The Central Government may, at any time after the commencement of the Small Industries Development Bank of India (Amendment) Act, 2000, by notification, convert such number of equity shares held by the Development Bank, the public sector banks, the General Insurance Corporation, the Life Insurance Corporation and other institutions owned or controlled by the Central Government, not exceeding twentyfive crores, as it may decide, into redeemable preference shares:
Provided that such conversion shall in no case reduce the equity shares held in aggregate by the Development Bank, the public sector banks, the General Insurance Corporation, the Life Insurance Corporation and other institutions owned or controlled by the Central Government to less than fifty-one per cent.
(2) The redeemable preference shares referred to in sub-section (1) shall--
(a) carry such fixed rate of dividend as the Central Government may specify at the time of such conversion, and
(b) neither be transferable nor carry any voting rights.
(3) The redeemable preference shares referred to in sub-section (1) shall be redeemed by the Small Industries Bank within three years from the date of such conversion in such instalments and in such manner as the Board may determine.]
Provided that such conversion shall in no case reduce the equity shares held in aggregate by the Development Bank, the public sector banks, the General Insurance Corporation, the Life Insurance Corporation and other institutions owned or controlled by the Central Government to less than fifty-one per cent.
(2) The redeemable preference shares referred to in sub-section (1) shall--
(a) carry such fixed rate of dividend as the Central Government may specify at the time of such conversion, and
(b) neither be transferable nor carry any voting rights.
(3) The redeemable preference shares referred to in sub-section (1) shall be redeemed by the Small Industries Bank within three years from the date of such conversion in such instalments and in such manner as the Board may determine.]
1. Subs. by Act 7 of 2000, s. 3, for sections 4 to 6 (w.e.f. 27-3-2000).
Section 4B Transfer of capital.
1[4B. Transfer of capital.--On such date as the Central Government may, in consultation with the Development Bank, by notification, specify (hereinafter referred to as "the specified date"), not less than fifty-one per cent. of the issued capital of the Small Industries Bank which has been subscribed by the Development Bank as on the date immediately preceding the specified date shall, stand transferred to, and vested in, the public sector banks, the General Insurance Corporation, the Life Insurance Corporation and other institutions owned or controlled by the Central Government in such proportion, manner and on such terms and conditions as may be determined by that Government.]
1. Subs. by Act 7 of 2000, s. 3, for sections 4 to 6 (w.e.f. 27-3-2000).
Section 4C Issued capital.
1[4C. Issued capital.--(1) The issued capital, of the Small Industries Bank, of four hundred and fifty crores of rupees, immediately before the commencement of the Small Industries Development Bank of India (Amendment) Act, 2000, shall, on such commencement, stand divided into forty-five crores equity shares of rupees ten each.
(2) The Board may, from time to time, increase the issued equity share capital or redeemable preference share capital of the Small Industries Bank by allotment of shares to such persons and on such terms and conditions as the Board may determine:
Provided that no increase in the issued equity capital shall be made in such a manner that the Development Bank, the public sector banks, the General Insurance Corporation, the Life Insurance Corporation and other institutions owned or controlled by the Central Government, hold in aggregate at any time, less than fifty-one per cent. of the issued equity share capital of the Small Industries Bank.]
(2) The Board may, from time to time, increase the issued equity share capital or redeemable preference share capital of the Small Industries Bank by allotment of shares to such persons and on such terms and conditions as the Board may determine:
Provided that no increase in the issued equity capital shall be made in such a manner that the Development Bank, the public sector banks, the General Insurance Corporation, the Life Insurance Corporation and other institutions owned or controlled by the Central Government, hold in aggregate at any time, less than fifty-one per cent. of the issued equity share capital of the Small Industries Bank.]
1. Subs. by Act 7 of 2000, s. 3, for sections 4 to 6 (w.e.f. 27-3-2000).
Section 4D Reduction of share capital.
1[4D. Reduction of share capital.--(1) The Small Industries Bank may, with the prior approval of the Central Government, by a resolution passed in a general meeting of the shareholders, reduce its share capital in any way.
(2) Without prejudice to the generality of the foregoing power, the share capital may be reduced by--
(a) extinguishing or reducing the liability on any of its equity shares in respect of the share capital not paid-up;
(b) either with or without extinguishing or reducing liability on any of its equity shares, cancelling any paid-up share capital which is lost, or is unrepresented by available assets; or
(c) either with or without extinguishing or reducing liability on any of its equity shares, paying off any paid-up share capital which is in excess of the wants of the Small Industries Bank.
(3) In any general meeting referred to in sub-section (1), the resolution for reduction of share capital shall be passed by shareholders entitled to vote, voting in person, or, where proxies are allowed, by proxy, and the votes cast in favour of the resolution are not less than three times the number of the votes, if any, cast against the resolution by shareholders so entitled and voting.]
(2) Without prejudice to the generality of the foregoing power, the share capital may be reduced by--
(a) extinguishing or reducing the liability on any of its equity shares in respect of the share capital not paid-up;
(b) either with or without extinguishing or reducing liability on any of its equity shares, cancelling any paid-up share capital which is lost, or is unrepresented by available assets; or
(c) either with or without extinguishing or reducing liability on any of its equity shares, paying off any paid-up share capital which is in excess of the wants of the Small Industries Bank.
(3) In any general meeting referred to in sub-section (1), the resolution for reduction of share capital shall be passed by shareholders entitled to vote, voting in person, or, where proxies are allowed, by proxy, and the votes cast in favour of the resolution are not less than three times the number of the votes, if any, cast against the resolution by shareholders so entitled and voting.]
1. Subs. by Act 7 of 2000, s. 3, for sections 4 to 6 (w.e.f. 27-3-2000).
Section 4E Restriction on exercising of voting right.
1[4E. Restriction on exercising of voting right.--Every shareholder of the Small Industries Bank holding equity shares shall have a right to vote in respect of such shares on every resolution and his voting right on a poll shall be in proportion to his share of the paid-up equity share capital of the Small Industries Bank:
Provided, however, that no shareholder, other than the Development Bank, the public sector banks, the General Insurance Corporation, the Life Insurance Corporation and other institutions owned or controlled by the Central Government, shall be entitled to exercise voting rights in respect of any equity shares held by him in excess of ten per cent. of the issued equity share capital.]
Provided, however, that no shareholder, other than the Development Bank, the public sector banks, the General Insurance Corporation, the Life Insurance Corporation and other institutions owned or controlled by the Central Government, shall be entitled to exercise voting rights in respect of any equity shares held by him in excess of ten per cent. of the issued equity share capital.]
1. Subs. by Act 7 of 2000, s. 3, for sections 4 to 6 (w.e.f. 27-3-2000).
Section 5 Management.
1[5. Management.(1) The general superintendence, direction and management of affairs and business of the Small Industries Bank shall vest in a Board of Directors which may exercise all powers and do all such acts and things as may be exercised or done by the Small Industries Bank and are not by this Act expressly directed or required to be done by the Small Industries Bank in general meeting.
(2) The Board may direct that any power exercisable by it under this Act shall also be exercisable in such cases and subject to such conditions, if any, as may be specified by it, by the chairman and managing director or the whole-time directors.
(3) Subject to the provisions of this Act, the Board in discharging its functions shall act on business principles with due regard to public interest.]
(2) The Board may direct that any power exercisable by it under this Act shall also be exercisable in such cases and subject to such conditions, if any, as may be specified by it, by the chairman and managing director or the whole-time directors.
(3) Subject to the provisions of this Act, the Board in discharging its functions shall act on business principles with due regard to public interest.]
1. Subs. by Act 7 of 2000, s. 3, for sections 4 to 6 (w.e.f. 27-3-2000).
Section 6 Constitution of Board.
1[6. Constitution of Board.--(1) The Board shall consist of the following, namely:--
(a) a chairman and managing director appointed by the Central Government;
(b) two whole-time directors appointed by the Central Government;
(c) two directors who shall be officials of the Central Government nominated by the Central Government;
(d) three directors to be nominated in the prescribed manner by the Development Bank, the public sector banks, the General Insurance Corporation, the Life Insurance Corporation and other institutions owned or controlled by the Central Government;
(e) three directors, including one Director from the officials of the State Financial Corporations, nominated by the Central Government from amongst the persons having special knowledge of, or professional experience in, science, technology, economics, industry, banking, industrial cooperatives, law, industrial finance, investment, accountancy, marketing or any other matter, the special knowledge of, or professional experience in, which would, in the opinion of the Central Government, be useful to the Small Industries Bank;
(f) such number of directors not exceeding four elected in the prescribed manner, by shareholders, other than the Development Bank, the public sector banks, the General Insurance Corporation, the Life Insurance Corporation and other institutions owned or controlled by the Central Government, whose names are entered in the register of shareholders of the Small Industries Bank ninety days before the date of the meeting in which such election takes place on the following basis, namely:--
(i) where the total amount of equity share capital issued to such shareholders is ten per cent. or less of the total issued equity share capital, two directors;
(ii) where the total amount of equity share capital issued to such shareholders is more than ten per cent. but less than twenty-five per cent. of the total issued equity share capital, three directors; and
(iii) where the total amount of equity share capital issued to such shareholders is twenty-five per cent. or more of the total issued equity share capital, four directors:
Provided that if the percentage of holding of issued equity share capital with the shareholders, other than the Development Bank, the public sector banks, the General Insurance Corporation, the Life Insurance Corporation and other institutions owned or controlled by the Central Government, does not permit election of four directors or until the assumption of charge by the elected directors, the Board may at any time co-opt such number of directors, not exceeding four, from amongst the persons having special knowledge of, or professional experience in, science, technology, economics, industry, banking, industrial co-operatives, law, industrial finance, investment, accountancy, marketing or any other matter, the special knowledge of, or professional experience in, which would, in the opinion of the Board, be useful to the Small Industries Bank for carrying out its functions, who shall hold office until the assumption of charge by the elected directors and an equal number of such co-opted directors shall retire in the order of co-option.
(2) The chairman and managing director and the whole-time directors shall hold office for such term not exceeding five years as the Central Government may specify in this behalf and any person so appointed shall be eligible for re-appointment.
(3) Notwithstanding anything contained in sub-section (1), the Central Government shall have the right to terminate the term of office of the chairman and managing director or the whole-time director, as the case may be, at any time before the expiry of the term specified under sub-section (2) by giving him notice of not less than three months in writing or three months salary and allowances in lieu of such notice and the chairman and managing director or the whole-time director, as the case may be, shall also have the right to relinquish his office at any time before the expiry of the term specified under sub-section (2) by giving, the Central Government, notice of not less than three months in writing.
(4) The chairman and managing director and the whole-time directors shall receive such salary and allowances, as may be determined by the Central Government.
(5) The Central Government may, at any time, remove the chairman and managing director or the whole-time director, as the case may be, from office:
Provided that no person shall be removed from his office, under this sub-section, unless he has been given an opportunity of showing cause against his removal.
(6) Every Director nominated under clauses (c), (d) and (e) of sub-section (1), shall hold office during the pleasure of the authority nominating him.
(7) Subject to the provisions of sub-section (6),--
(a) every Director nominated under clauses (d) and (e) of sub-section (1) shall hold office for such term not exceeding three years as the Central Government, or the authority nominating him, as the case may be, may specify in this behalf and thereafter until his successor assumes office, and shall be eligible for re-nomination:
Provided that no such Director shall hold office continuously for a period exceeding six years; and
(b) every Director elected under clause (f) of sub-section (1) shall hold office for three years and thereafter until his successor assumes office and shall be eligible for re-election:
Provided that no such director shall hold office continuously for a period exceeding six years.
(8) The shareholders, other than the Development Bank, the public sector banks, the General Insurance Corporation, the Life Insurance Corporation and other institutions owned or controlled by the Central Government may, after giving the director a reasonable opportunity of being heard in the manner as may be prescribed, by resolution passed by majority of the votes of such shareholders holding in the aggregate not less than one-half of the equity share capital held by such shareholders, remove any director elected under clause (f) of sub-section (1) and elect another director in his place to fill the vacancy so caused.
(9) (i) A meeting of the Board shall be held at least once in every three months and at least four meetings shall be held every year and the meetings may be held at such places as may be prescribed.
(ii) Notice of every meeting of the Board shall be given in writing to every Director for the time being in India, and at his usual address in India to every other Director.
(10) Subject to the provisions contained in this Chapter, the Board may meet at such times and places and shall observe such rules of procedure in regard to transaction of its business including the manner of adoption of resolutions as may be prescribed.
(11) The chairman and managing director, if for any reason, is unable to attend a meeting of the Board, any other Director nominated by the chairman and managing director in this behalf and in the absence of such nomination, any director elected by the directors present from among themselves, shall preside at the meeting.
(12) All questions which come up before any meeting of the Board shall be decided by a majority of votes of the directors present and voting, and in the event of an equality of votes, the chairman and managing director, or in his absence, the person presiding, shall have a second or casting vote.
(13) Save as provided in sub-section (12), every Director of the Board shall have one vote.]
(a) a chairman and managing director appointed by the Central Government;
(b) two whole-time directors appointed by the Central Government;
(c) two directors who shall be officials of the Central Government nominated by the Central Government;
(d) three directors to be nominated in the prescribed manner by the Development Bank, the public sector banks, the General Insurance Corporation, the Life Insurance Corporation and other institutions owned or controlled by the Central Government;
(e) three directors, including one Director from the officials of the State Financial Corporations, nominated by the Central Government from amongst the persons having special knowledge of, or professional experience in, science, technology, economics, industry, banking, industrial cooperatives, law, industrial finance, investment, accountancy, marketing or any other matter, the special knowledge of, or professional experience in, which would, in the opinion of the Central Government, be useful to the Small Industries Bank;
(f) such number of directors not exceeding four elected in the prescribed manner, by shareholders, other than the Development Bank, the public sector banks, the General Insurance Corporation, the Life Insurance Corporation and other institutions owned or controlled by the Central Government, whose names are entered in the register of shareholders of the Small Industries Bank ninety days before the date of the meeting in which such election takes place on the following basis, namely:--
(i) where the total amount of equity share capital issued to such shareholders is ten per cent. or less of the total issued equity share capital, two directors;
(ii) where the total amount of equity share capital issued to such shareholders is more than ten per cent. but less than twenty-five per cent. of the total issued equity share capital, three directors; and
(iii) where the total amount of equity share capital issued to such shareholders is twenty-five per cent. or more of the total issued equity share capital, four directors:
Provided that if the percentage of holding of issued equity share capital with the shareholders, other than the Development Bank, the public sector banks, the General Insurance Corporation, the Life Insurance Corporation and other institutions owned or controlled by the Central Government, does not permit election of four directors or until the assumption of charge by the elected directors, the Board may at any time co-opt such number of directors, not exceeding four, from amongst the persons having special knowledge of, or professional experience in, science, technology, economics, industry, banking, industrial co-operatives, law, industrial finance, investment, accountancy, marketing or any other matter, the special knowledge of, or professional experience in, which would, in the opinion of the Board, be useful to the Small Industries Bank for carrying out its functions, who shall hold office until the assumption of charge by the elected directors and an equal number of such co-opted directors shall retire in the order of co-option.
(2) The chairman and managing director and the whole-time directors shall hold office for such term not exceeding five years as the Central Government may specify in this behalf and any person so appointed shall be eligible for re-appointment.
(3) Notwithstanding anything contained in sub-section (1), the Central Government shall have the right to terminate the term of office of the chairman and managing director or the whole-time director, as the case may be, at any time before the expiry of the term specified under sub-section (2) by giving him notice of not less than three months in writing or three months salary and allowances in lieu of such notice and the chairman and managing director or the whole-time director, as the case may be, shall also have the right to relinquish his office at any time before the expiry of the term specified under sub-section (2) by giving, the Central Government, notice of not less than three months in writing.
(4) The chairman and managing director and the whole-time directors shall receive such salary and allowances, as may be determined by the Central Government.
(5) The Central Government may, at any time, remove the chairman and managing director or the whole-time director, as the case may be, from office:
Provided that no person shall be removed from his office, under this sub-section, unless he has been given an opportunity of showing cause against his removal.
(6) Every Director nominated under clauses (c), (d) and (e) of sub-section (1), shall hold office during the pleasure of the authority nominating him.
(7) Subject to the provisions of sub-section (6),--
(a) every Director nominated under clauses (d) and (e) of sub-section (1) shall hold office for such term not exceeding three years as the Central Government, or the authority nominating him, as the case may be, may specify in this behalf and thereafter until his successor assumes office, and shall be eligible for re-nomination:
Provided that no such Director shall hold office continuously for a period exceeding six years; and
(b) every Director elected under clause (f) of sub-section (1) shall hold office for three years and thereafter until his successor assumes office and shall be eligible for re-election:
Provided that no such director shall hold office continuously for a period exceeding six years.
(8) The shareholders, other than the Development Bank, the public sector banks, the General Insurance Corporation, the Life Insurance Corporation and other institutions owned or controlled by the Central Government may, after giving the director a reasonable opportunity of being heard in the manner as may be prescribed, by resolution passed by majority of the votes of such shareholders holding in the aggregate not less than one-half of the equity share capital held by such shareholders, remove any director elected under clause (f) of sub-section (1) and elect another director in his place to fill the vacancy so caused.
(9) (i) A meeting of the Board shall be held at least once in every three months and at least four meetings shall be held every year and the meetings may be held at such places as may be prescribed.
(ii) Notice of every meeting of the Board shall be given in writing to every Director for the time being in India, and at his usual address in India to every other Director.
(10) Subject to the provisions contained in this Chapter, the Board may meet at such times and places and shall observe such rules of procedure in regard to transaction of its business including the manner of adoption of resolutions as may be prescribed.
(11) The chairman and managing director, if for any reason, is unable to attend a meeting of the Board, any other Director nominated by the chairman and managing director in this behalf and in the absence of such nomination, any director elected by the directors present from among themselves, shall preside at the meeting.
(12) All questions which come up before any meeting of the Board shall be decided by a majority of votes of the directors present and voting, and in the event of an equality of votes, the chairman and managing director, or in his absence, the person presiding, shall have a second or casting vote.
(13) Save as provided in sub-section (12), every Director of the Board shall have one vote.]
1. Subs. by Act 7 of 2000, s. 3, for sections 4 to 6 (w.e.f. 27-3-2000).
Section 7 [Omitted.].
7. [Managing Director.]--Omitted by the Small Industries Development Bank of India (Amendment) Act, 2000 (7 of 2000) s. 4 (w.e.f. 27-3-2000).
Section 8 Disqualification of directors.
1[8. Disqualifications of directors.-- A person shall not be eligible for being elected as a director under clause (f) of sub-section (1) of section 6, if he--
(a) has been found to be of unsound mind by a court of competent jurisdiction and the finding is in force;
(b) is an undischarged insolvent;
(c) has applied to be adjudicated as an insolvent and his application is pending;
(d) has been convicted by a court of competent jurisdiction, of any offence involving moral turpitude and sentenced in respect thereof to imprisonment for not less than six months and a period of five years has not elapsed from the date of expiry of the sentence; or
(e) has not paid any call in respect of shares of the Small Industries Bank held by him, whether alone or jointly with others, and six months have elapsed from the last day fixed for the payment of the call.]
(a) has been found to be of unsound mind by a court of competent jurisdiction and the finding is in force;
(b) is an undischarged insolvent;
(c) has applied to be adjudicated as an insolvent and his application is pending;
(d) has been convicted by a court of competent jurisdiction, of any offence involving moral turpitude and sentenced in respect thereof to imprisonment for not less than six months and a period of five years has not elapsed from the date of expiry of the sentence; or
(e) has not paid any call in respect of shares of the Small Industries Bank held by him, whether alone or jointly with others, and six months have elapsed from the last day fixed for the payment of the call.]
1. Subs. by Act 7 of 2000, s. 5, for sections 8 and 9 (w.e.f. 27-3-2000).
Section 9 Vacation and resignation of office by directors.
1[9. Vacation and resignation of office by directors.--(1) The office of a director shall become vacant if he--
(a) becomes subject to any of the disqualifications mentioned in section 8; or
(b) resigns his office by giving notice in writing under his hand and the resignation is accepted; or
(c) absents himself from three consecutive meetings of the Board without obtaining leave of absence from the Board.
(2) Notwithstanding anything contained in clause (a) of sub-section (1), the disqualifications referred to in that clause shall not take effect--
(a) for thirty days from the date of the adjudication, sentence or order;
(b) where any appeal or petition is preferred within thirty days aforesaid against the adjudication, sentence or conviction resulting in the sentence or order until the expiry of seven days from the date on which such appeal or petition is disposed of; or
(c) where within the seven days aforesaid, any further appeal or petition is preferred in respect of the adjudication, sentence, conviction or order and the appeal or petition, if allowed, would result in the removal of the disqualification, until such further appeal or petition is disposed of.]
(a) becomes subject to any of the disqualifications mentioned in section 8; or
(b) resigns his office by giving notice in writing under his hand and the resignation is accepted; or
(c) absents himself from three consecutive meetings of the Board without obtaining leave of absence from the Board.
(2) Notwithstanding anything contained in clause (a) of sub-section (1), the disqualifications referred to in that clause shall not take effect--
(a) for thirty days from the date of the adjudication, sentence or order;
(b) where any appeal or petition is preferred within thirty days aforesaid against the adjudication, sentence or conviction resulting in the sentence or order until the expiry of seven days from the date on which such appeal or petition is disposed of; or
(c) where within the seven days aforesaid, any further appeal or petition is preferred in respect of the adjudication, sentence, conviction or order and the appeal or petition, if allowed, would result in the removal of the disqualification, until such further appeal or petition is disposed of.]
1. Subs. by Act 7 of 2000, s. 5, for sections 8 and 9 (w.e.f. 27-3-2000).
Section 10 [Omitted.].
10. [Causal Vacancies in office of Managing Director.]--Omitted by the Small Industries Development Bank of India (Amendment) Act, 2000 (7of 2000) s. 6 (w.e.f. 27-3-2000).
Section 11 [Omitted.].
11. [Meetings of the Board.]--Omitted by s. 6, ibid. (w.e.f. 27-3-2000).
Section 12 Executive Committee and other committees.
1[12. Executive Committee and other committees.-- (1) The Board shall constitute an Executive Committee consisting of the chairman and managing director, the whole-time directors and such other directors as it may deem fit.
(2) The Executive Committee shall discharge such functions as may be prescribed or as may, without prejudice to the provisions contained in section 34, be delegated to it by the Board.
(3) The Board may constitute such other committees whether consisting wholly of directors or wholly of other persons or partly of directors and partly of other persons for such purpose or purposes as it may think fit.
(4) The Executive Committee or any other committee constituted under this section shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings as may be prescribed.]
(2) The Executive Committee shall discharge such functions as may be prescribed or as may, without prejudice to the provisions contained in section 34, be delegated to it by the Board.
(3) The Board may constitute such other committees whether consisting wholly of directors or wholly of other persons or partly of directors and partly of other persons for such purpose or purposes as it may think fit.
(4) The Executive Committee or any other committee constituted under this section shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings as may be prescribed.]
1. Subs. by Act 7 of 2000, s. 7, for section 12 (w.e.f. 27-3-2000).
Section 12A Fees and allowances of directors and members of committees.
1[12A. Fees and allowances of directors and members of committees.--The directors and the members of a committee shall be paid such fees and allowances as may be prescribed for attending the meetings of the Board or of any committee constituted in pursuance of this Act and for attending to any other work of the Small Industries Bank:
Provided that no fees shall be payable to the chairman and managing director or to the whole-time directors or to any other director who is an official of the Government.]
Provided that no fees shall be payable to the chairman and managing director or to the whole-time directors or to any other director who is an official of the Government.]
1. Subs. by Act 7 of 2000, s. 7, for section 12 (w.e.f. 27-3-2000).
Section 13 Business of Small Industries Bank.
(1) The Small Industries Bank shall function as the principal financial institution for the promotion, financing and development of industrial concerns in the small-scale sector and shall also coordinate the functions of institutions engaged in promoting, financing and developing the industrial concerns in the small-scale sector and may carry on and transact any of the following business, namely:--
1[(i) granting loans and advances to any State Financial Corporation, State Industrial Development Corporation, State Small Industries Corporation, scheduled bank, State Cooperative Bank or such other financial institutions, approved by the Board in this behalf, by way of refinance on such terms and conditions as it may deem fit to impose, of any loans or advances granted to industrial concerns in the small-scale sector by such corporation, bank, or institution or, of any loans or advances granted by the State Financial Corporation or State Industrial Development Corporation to any other industrial concern, which are repayable within a period not exceeding twenty-five years;]
(ii) accepting, discounting or rediscounting bills of exchange and promissory notes made, drawn, accepted or endorsed by industrial concerns in the small-scale sector or by any person selling products manufactured by an industrial concern in the small-scale sector;
(iii) subscribing to, or purchasing stocks, shares bonds or debentures of, any State Financial Corporation, State Industrial Development Corporation, State Small Industries Corporation, National Small Industries Corporation or 2[such other financial institutions as may be approved by the Board in this behalf];
(iv) granting lines of credit or loans and advances to any State Financial Corporation, State Industrial Development Corporation, State Small Industries Corporation, National Small Industries Corporation or 2[such other financial institutions as may be approved by the Board in this behalf];
(v) granting loans and advances to any industrial concern in the small-scale sector or subscribing to, or purchasing, or under-writing the issue of stocks, shares, bonds or debentures of, any such concern:
Provided that nothing contained in this clause shall be deemed to preclude the Small Industries Bank from granting loans or advances to, or subscribing to the debentures of, an industrial concern in the small-scale sector, the amounts outstanding thereon may be convertible at the option of the Small Industries Bank into stocks or shares of that concern within the period of loan, advance or debenture is repayable.
Explanation.--In this clause, the expression "the amounts outstanding thereon" used in relation to any loan or advance, shall mean the principal, interest and other charges payable on such loan or advance as at the time when the amounts are sought to be converted into stocks or shares;
(vi) granting loans and advances--
(a) to any person exporting; or
(b) to any person outside India, in connection with the export; or
(c) for the execution of turn-key projects outside India by any industrial concern in the smallscale sector;
(vii) granting loans and advances to a scheduled bank or any other bank or such financial institutions 3[approved by the Board in this behalf], by way of refinance of loans and advances granted by it for purposes of export;
(viii) accepting, collecting, discounting, rediscounting, purchasing, selling or negotiating in or outside India, bills of exchange or promissory notes arising out of transactions, relating to export or import and granting of loans and advances in or outside India against such bills or promissory notes;
(ix) granting, opening, issuing, confirming or endorsing letters of credit and negotiating or collecting bills or other documents drawn thereunder;
(x) granting lines of credit to the Government of any foreign State or any financial institution or person outside India for the purpose of export or import;
(xi) financing export from or import into India of machinery, equipment or other assets including vehicles, ships and aircrafts on lease, sub-lease or hire purchase basis by or for any industrial concern in small-scale sector;
(xii) buying or selling of, or entering into such other dealings in, foreign exchange, as may be necessary for the discharge of the functions of the Small Industries Bank;
(xiii) opening of any account in any bank in or outside India or making of any agency arrangements with, or acting as an agent or correspondent of, any bank or other institution in or outside India;
(xiv) transferring for consideration any instrument relating to loans and advances granted by it to any industrial concern in the small-scale sector;
(xv) granting loans and advances to any person for purposes of investment in any industrial concern in the small-scale sector;
(xvi) guaranteeing loans raised from, or credit arrangements made with, any bank, financial institution or other lending agency in any country outside India in foreign currency, with the approval of the Central Government, by industrial concern in the small-scale sector;
(xvii) guaranteeing deferred payments due from any industrial concern in the small-scale sector;
(xviii) guaranteeing--
(a) loans raised by industrial concerns in the small-scale sector which are floated in the public market, or
(b) loans raised by any industrial concern in the small-scale sector from any scheduled bank or State Co-operative Bank or State Financial Corporation or State Industrial Corporation or such other financial institutions 4[as approved by the Board in this behalf];
(xix) guaranteeing the obligations of any scheduled bank or State Co-operative Bank or State Financial Corporation or State Industrial Development Corporation or State Small Industries Corporation or such other financial institutions 4[as approved by the Board in this behalf], arising out of, or in connection with, underwriting the issue of stocks, shares, bonds or debentures of any industrial concern in the small-scale sector;
(xx) providing factoring services to any industrial concern in the small-scale sector;
(xxi) providing technical and financial consultancy, merchant banking and extension services;
(xxii) undertaking activities for promotion of industry in the small-scale sector including entrepreneural development programmes, raw material purchase, marketing support and promotion of, or financial support to, agencies engaged in such activities;
(xxiii) acquiring, with the approval of 5[the Central Government], the undertaking including the business, assets and liabilities of any institution the principal object of which is the promotion or development of industry in the small-scale sector in India, or the grant of financial assistance for such promotion or development;
(xxiv) leasing, sub-leasing or giving on hire or hire-purchase any movable or immovable assets to any industrial concern in the small-scale sector;
(xxv) undertaking research and surveys for evaluating or dealing with marketing or investments and undertaking and carrying on techno-economic studies in connection with the development of industry in the small-scale sector;
(xxvi) providing technical, legal, marketing and administrative assistance to any industrial concern in the small-scale sector or any person for promotion, management or expansion of any industrial concern in the small-scale sector;
(xxvii) planning, promoting and developing industries in the small-scale sector;
(xxviii) promoting, forming or conducting or associating in the promotion, formation or conduct of companies, subsidiaries, societies, trusts or such other association of persons as it may deem fit;
(xxix) acting as agent of--
(a) the Central Government or of the Reserve Bank or of the Development Bank, or
(b) such other Government or person as 6[the Board] may authorise;
(xxx) doing any other kind of business which the Central Government may, on the recommendation of 6[the Board], authorise;
(xxxi) generally doing such other acts and things as may be incidental to, or consequential upon, the exercise of its powers or the discharge of its duties under this Act or any other law for the time being in force including sale or transfer of any of its assets.
(2) The Small Industries Bank may receive in consideration of any of the services mentioned in sub-section (1) such commission, brokerage, interest, remuneration or fees as may be agreed upon.
(3) The Small Industries Bank shall not grant any loan or advance or other financial accommodation on the security of its own bonds or debentures.
1[(i) granting loans and advances to any State Financial Corporation, State Industrial Development Corporation, State Small Industries Corporation, scheduled bank, State Cooperative Bank or such other financial institutions, approved by the Board in this behalf, by way of refinance on such terms and conditions as it may deem fit to impose, of any loans or advances granted to industrial concerns in the small-scale sector by such corporation, bank, or institution or, of any loans or advances granted by the State Financial Corporation or State Industrial Development Corporation to any other industrial concern, which are repayable within a period not exceeding twenty-five years;]
(ii) accepting, discounting or rediscounting bills of exchange and promissory notes made, drawn, accepted or endorsed by industrial concerns in the small-scale sector or by any person selling products manufactured by an industrial concern in the small-scale sector;
(iii) subscribing to, or purchasing stocks, shares bonds or debentures of, any State Financial Corporation, State Industrial Development Corporation, State Small Industries Corporation, National Small Industries Corporation or 2[such other financial institutions as may be approved by the Board in this behalf];
(iv) granting lines of credit or loans and advances to any State Financial Corporation, State Industrial Development Corporation, State Small Industries Corporation, National Small Industries Corporation or 2[such other financial institutions as may be approved by the Board in this behalf];
(v) granting loans and advances to any industrial concern in the small-scale sector or subscribing to, or purchasing, or under-writing the issue of stocks, shares, bonds or debentures of, any such concern:
Provided that nothing contained in this clause shall be deemed to preclude the Small Industries Bank from granting loans or advances to, or subscribing to the debentures of, an industrial concern in the small-scale sector, the amounts outstanding thereon may be convertible at the option of the Small Industries Bank into stocks or shares of that concern within the period of loan, advance or debenture is repayable.
Explanation.--In this clause, the expression "the amounts outstanding thereon" used in relation to any loan or advance, shall mean the principal, interest and other charges payable on such loan or advance as at the time when the amounts are sought to be converted into stocks or shares;
(vi) granting loans and advances--
(a) to any person exporting; or
(b) to any person outside India, in connection with the export; or
(c) for the execution of turn-key projects outside India by any industrial concern in the smallscale sector;
(vii) granting loans and advances to a scheduled bank or any other bank or such financial institutions 3[approved by the Board in this behalf], by way of refinance of loans and advances granted by it for purposes of export;
(viii) accepting, collecting, discounting, rediscounting, purchasing, selling or negotiating in or outside India, bills of exchange or promissory notes arising out of transactions, relating to export or import and granting of loans and advances in or outside India against such bills or promissory notes;
(ix) granting, opening, issuing, confirming or endorsing letters of credit and negotiating or collecting bills or other documents drawn thereunder;
(x) granting lines of credit to the Government of any foreign State or any financial institution or person outside India for the purpose of export or import;
(xi) financing export from or import into India of machinery, equipment or other assets including vehicles, ships and aircrafts on lease, sub-lease or hire purchase basis by or for any industrial concern in small-scale sector;
(xii) buying or selling of, or entering into such other dealings in, foreign exchange, as may be necessary for the discharge of the functions of the Small Industries Bank;
(xiii) opening of any account in any bank in or outside India or making of any agency arrangements with, or acting as an agent or correspondent of, any bank or other institution in or outside India;
(xiv) transferring for consideration any instrument relating to loans and advances granted by it to any industrial concern in the small-scale sector;
(xv) granting loans and advances to any person for purposes of investment in any industrial concern in the small-scale sector;
(xvi) guaranteeing loans raised from, or credit arrangements made with, any bank, financial institution or other lending agency in any country outside India in foreign currency, with the approval of the Central Government, by industrial concern in the small-scale sector;
(xvii) guaranteeing deferred payments due from any industrial concern in the small-scale sector;
(xviii) guaranteeing--
(a) loans raised by industrial concerns in the small-scale sector which are floated in the public market, or
(b) loans raised by any industrial concern in the small-scale sector from any scheduled bank or State Co-operative Bank or State Financial Corporation or State Industrial Corporation or such other financial institutions 4[as approved by the Board in this behalf];
(xix) guaranteeing the obligations of any scheduled bank or State Co-operative Bank or State Financial Corporation or State Industrial Development Corporation or State Small Industries Corporation or such other financial institutions 4[as approved by the Board in this behalf], arising out of, or in connection with, underwriting the issue of stocks, shares, bonds or debentures of any industrial concern in the small-scale sector;
(xx) providing factoring services to any industrial concern in the small-scale sector;
(xxi) providing technical and financial consultancy, merchant banking and extension services;
(xxii) undertaking activities for promotion of industry in the small-scale sector including entrepreneural development programmes, raw material purchase, marketing support and promotion of, or financial support to, agencies engaged in such activities;
(xxiii) acquiring, with the approval of 5[the Central Government], the undertaking including the business, assets and liabilities of any institution the principal object of which is the promotion or development of industry in the small-scale sector in India, or the grant of financial assistance for such promotion or development;
(xxiv) leasing, sub-leasing or giving on hire or hire-purchase any movable or immovable assets to any industrial concern in the small-scale sector;
(xxv) undertaking research and surveys for evaluating or dealing with marketing or investments and undertaking and carrying on techno-economic studies in connection with the development of industry in the small-scale sector;
(xxvi) providing technical, legal, marketing and administrative assistance to any industrial concern in the small-scale sector or any person for promotion, management or expansion of any industrial concern in the small-scale sector;
(xxvii) planning, promoting and developing industries in the small-scale sector;
(xxviii) promoting, forming or conducting or associating in the promotion, formation or conduct of companies, subsidiaries, societies, trusts or such other association of persons as it may deem fit;
(xxix) acting as agent of--
(a) the Central Government or of the Reserve Bank or of the Development Bank, or
(b) such other Government or person as 6[the Board] may authorise;
(xxx) doing any other kind of business which the Central Government may, on the recommendation of 6[the Board], authorise;
(xxxi) generally doing such other acts and things as may be incidental to, or consequential upon, the exercise of its powers or the discharge of its duties under this Act or any other law for the time being in force including sale or transfer of any of its assets.
(2) The Small Industries Bank may receive in consideration of any of the services mentioned in sub-section (1) such commission, brokerage, interest, remuneration or fees as may be agreed upon.
(3) The Small Industries Bank shall not grant any loan or advance or other financial accommodation on the security of its own bonds or debentures.
1. Subs. by s. 8, ibid., for clause (i) (w.e.f. 27-3-2000).
2. Subs. by s. 8, ibid., for "such other financial institutions, as the Central Government may, on the recommendation of the Development Bank, specify" (w.e.f. 27-3-2000).
3. Subs. by Act 7 of 2000, s. 8, for "as the Central Government may, on the recommendation of the Development Bank, specify" (w.e.f. 27-3-2000).
4. Subs. by Act 7 of 2000, s. 8, for "as the Central Government may, on the recommendation of the Development Bank, specify" (w.e.f. 27-3-2000).
5. Subs. by s. 8, ibid., for "the Central Government on the recommendation of the Development Bank" (w.e.f. 27-3-2000).
6 Subs. by s. 8, ibid., for "the Development Bank" (w.e.f. 27-3-2000).
2. Subs. by s. 8, ibid., for "such other financial institutions, as the Central Government may, on the recommendation of the Development Bank, specify" (w.e.f. 27-3-2000).
3. Subs. by Act 7 of 2000, s. 8, for "as the Central Government may, on the recommendation of the Development Bank, specify" (w.e.f. 27-3-2000).
4. Subs. by Act 7 of 2000, s. 8, for "as the Central Government may, on the recommendation of the Development Bank, specify" (w.e.f. 27-3-2000).
5. Subs. by s. 8, ibid., for "the Central Government on the recommendation of the Development Bank" (w.e.f. 27-3-2000).
6 Subs. by s. 8, ibid., for "the Development Bank" (w.e.f. 27-3-2000).
Section 14 Loans by Central Government.
The Central Government may, after the due appropriation made by Parliament by law in this behalf, advance to the Small Industries Bank--
(a) an interest free loan of such amount and repayable in such instalments and in such other manner as may be determined by the Central Government; and
(b) such further sums of money by way of loan on such terms and conditions as may be agreed upon:
Provided that the Central Government may, on a request being made to it by the Small Industries Bank, increase the number of instalments or alter the amount of any instalment or vary the date on which any instalment is payable under clause (a).
(a) an interest free loan of such amount and repayable in such instalments and in such other manner as may be determined by the Central Government; and
(b) such further sums of money by way of loan on such terms and conditions as may be agreed upon:
Provided that the Central Government may, on a request being made to it by the Small Industries Bank, increase the number of instalments or alter the amount of any instalment or vary the date on which any instalment is payable under clause (a).