Section 13 of The Banking Regulation Act, 1949 View Chapter 2

Restriction on commission, brokerage, discount, etc., on sale of shares.


   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.]

1Subs. 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).

2Subs. by Act 4 of 2013, s. 5, for "paid-up value of the said shares" (w.e.f. 18-1-2013).

3Ins. by s. 5, ibid. (w.e.f. 18-1-2013).