Issue of Bonds and Raising of Loans and Deposits

Finance199963 sections

Statutory text

(1) The State Development Bank may, subject to such directions or instructions as may be issued by the Reserve Bank of India or the National Bank from time to time, and with the previous sanction of the State Government issue bonds, which shall be in the form of promissory notes repayable on the expiry of such period or periods from the date of issue thereof as may be approved by the Reserve Bank of India or the National Bank: Provided that the State Development Bank may repay the amount due under the bonds at any time before the period or periods so fixed, after issuing a notice in such manner as it may prescribe to the bond holders.
(2) The State Development Bank may raise funds— (a) by way of loans or deposits from the Central Government or a State Government, the National Bank, the Reserve Bank of India or such other financial institutions as may be approved by the Trustee; (b) by way of deposits from the public.

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