Question

The section of BR act which deals with the regulation of acquisition of shares or voting rights

• A. Section 11
• B. Section 12
• C. Section 12 B
• D. Section 13

Answer 1

Answer:

C. Section 12 B

BR Act:

• The BR Act and the RBI Act empower the Reserve Bank to supervise and regulate the operations of all types of banks in India.

• Banking Companies Act 1949

• Act 10 of 1949

• Banking Companies Act was passed in : 10-3-1949

• Came into force in : 16-3-1949

• Banking Companies Act was renamed as Banking Regulation Act in : 1966

• Banking Regulation Act was applicable to Co-operative Societies in 1965 and came in to force on 1.3.1966

• Total Number Sections in BR Act - 56

• Total number of Schedules in BR Act - 5

• 5 parts

• 5 Schedules

Section 12B - Regulation of acquisition of shares or voting rights

• Any shareholders purchasing shares beyond 5% should take permission from RBI

Section 13-Restriction on commission, brokerage, discount, etc

• No banking company shall pay out any amount exceeding the aggregate of 2.5% of the price at which the said shares are issued