[(1-A) On and from the commencement of the Industrial Finance Corporation (Amendment) Act, 1972 (74 of 1972), the authorised capital of the Corporation shall stand increased to twenty crores of rupees, divided into forty thousand shares of five thousand rupees each, and the shares representing the capital so increased may be issued, with the sanction of the Central Government, as and when the Corporation may deem fit.]

[(1-B) On or after the commencement of the Industrial Finance Corporation (Amendment) Act, 1982 (2 of 1982), the authorised capital of the Corporation may be increased to such amount not exceeding one hundred crores of rupees as the Central Government may, from time to time, by notification in the Official Gazette, fix.

(1-C) The authorised capital increased under sub-section (1-B) shall be divided into such number of shares of five thousand rupees each as may be necessary and the shares representing the capital so increased may be issued with the sanction of the Central Government as and when the Corporation may deem fit.] [ Inserted by Act 2 of 1982, Section 3 (w.e.f. 12.3.1982).]

[(1-D) On or after the commencement of the Industrial Finance Corporation (Amendment) Act, 1986 (50 of 1986), the authorised capital of the Corporation may be increased to such amount not exceeding two hundred and fifty crores of rupees as the Central Government may, from time to time, by notification in the Official Gazette, fix.

(1-E) The authorised capital increased under sub-section (1-D) shall be divided into such number of shares of five thousand rupees each as may be necessary and the shares representing the capital so increased may be issued with the sanction of the Central Government as and when the Corporation may deem fit.] [ Inserted by Act 50 of 1986, Section 3 (w.e.f. 2.2.1987).]

(2)

Of the capital issued in the first instance, the Central Government and the Reserve Bank shall each subscribe for two thousand shares.

(3)

On application made before such date as may be notified by the Central Government in the Official Gazette in this behalf, scheduled banks may subscribe for two thousand five hundred shares, and insurance companies, investment trusts and other like financial institutions for two thousand five hundred shares, and co-operative banks for one thousand shares of the Corporation:

Provided that no institution shall be allotted more than ten percent of the shares reserved for the class of institutions to which it belongs.

(4)

The allotment of shares to the applicants mentioned in sub-section (3) shall be made by the Board in accordance with the regulations made in this behalf.

[* * *] [ Sub-Ss. (5) and (6) omitted by Act 18 of 1964, Section 38 and Sch. II (w.e.f. 1.8.1964).]

(6)

Shares of the Corporation shall not be transferable except to [the Development Bank] [ Substituted by Act 18 of 1964, Section 38 and Sch. II, for " the Central Government, the Reserve Bank " . (w.e.f. 1.8. 1964).], [the Reserve Bank] [ Inserted by Act 74 of 1972, Section 3.], any scheduled bank, any insurance company, any investment trust or any other like financial institution or any co-operative bank in accordance with the regulations made in this behalf.

(7)

[ ] [Inserted by Act 66 of 1960, Section 3. ] [In this section and in section 4-A] [ Substituted by Act 2 of 1982, Section 3 (w.e.f. 12.3.1982).][the expression "insurance companies "or "insurance company "includes the Life Insurance Corporation of India established under section 3 of the Life Insurance Corporation Act, 1956 (31 of 1956)] [Inserted by Act 66 of 1960, Section 3. ][, the General Insurance Corporation of India formed and registered under the Companies Act, 1956 (1 of 1956), its subsidiaries and such other institution or institutions dealing with general insurance business as may be notified by the Central Government in the Official Gazette in this behalf.] [ Inserted by Act 2 of 1982, Section 3 (w.e.f. 12.3.1982).]

[4-A. Transfer of shares and increase of capital .-(1) On such ][date] [ 1.8.1964 vide Notification No. S.O. 2662, dated 29.7.1964.][as the Central Government may, by notification in the Official Gazette, appoint-

(a) all shares of the Corporation held by the Central Government and the Reserve Bank shall stand transferred to and vest in the Development Bank and as compensation therefor the Development Bank shall pay to the Central Government and to the Reserve Bank respectively the face value of the shares held by that Government and by that Bank;

(b) the capital issued by the Corporation shall be increased by such number of shares as the Central Government may specify in this behalf and all such shares shall stand allotted to and be subscribed by the Development Bank, so however that after such increase the Development Bank holds not less than fifty per cent. of the paid-up capital of the Corporation.

(2)

If and when the remaining shares in the capital of the Corporation, or any part thereof, are issued, such further shares shall be offered to the holders of the shares of the Corporation in proportion, as nearly as circumstances admit, to the capital paid-up on those shares at the date of such further issue:] [Inserted by Act 18 of 1964, Section 38 and Sch. II (w.e.f. 1.7.1964). ]

[Provided that such holders shall have the right to renounce the shares so offered to them in favour of any scheduled bank, any insurance company, any investment trust or any other like financial institution or any co-operative bank, whether or not any such institution is a shareholder:

Provided further that if any such holder does not accept the shares so offered or does not exercise the right of renunciation in respect of any such shares in favour of any institution referred to in the preceding proviso within the time fixed therefor, the Board may allot such shares to any such institution with the concurrence of the Development Bank:

Provided also that if any such shares remain unallotted, they shall be subscribed for by the Development Bank.] [ Substituted by Act 2 of 1982, Section 4 (w.e.f. 12.3.1982).]