Chapter II ESTABLISHMENT AND INCORPORATION OF INSTITUTION

Finance202148 sections7 chapters

3. Establishment and incorporation of Institution.

Statutory text

(1) There shall be established, for the purposes of this Act, an Institution to be called the National Bank for Financing Infrastructure and Development as a development financial institution.
(2) The Institution shall be a body corporate by 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, both movable and immovable, and to contract, and shall, by the said name, sue or be sued.
(3) The head office of the Institution shall be in Mumbai.
(4) The Institution may establish offices, branches or agencies at any place within or outside India.

Chapter II ESTABLISHMENT AND INCORPORATION OF INSTITUTION

Statutory text

(1) The Institution shall have developmental and financial objectives as set out in sub-sections (2) and (3).
(2) The developmental objective of the Institution shall be to co-ordinate with the Central and State Governments, regulators, financial institutions, institutional investors and such other relevant stakeholders, in India or outside India, to facilitate building and improving the relevant institutions to support the development of long term non-recourse infrastructure financing in India including the domestic bonds and derivatives markets.
(3) The financial objective of the Institution shall be to lend or invest, directly or indirectly, and seek to attract investment from private sector investors and institutional investors, in infrastructure projects located in India, or partly in India and partly outside India, with a view to foster sustainable economic development in India.

Chapter II ESTABLISHMENT AND INCORPORATION OF INSTITUTION

Statutory text

(1) The authorised share capital of the Institution shall be one hundred thousand crore rupees divided into ten thousand crores of fully paid-up shares of ten rupees each: Provided that the Board may increase or reduce the nominal or face value of the shares, and divide the authorised capital into such denomination as it may decide: Provided further that the Board may, in consultation with the Central Government, increase or reduce the authorised capital subject to the shares in all cases being fully paid-up shares.
(2) The issued share capital of the Institution shall, on such date as may be notified by the Central Government, stand allotted to the Central Government.
(3) Shares of the Institution may be held by the Central Government, multilateral institutions, sovereign wealth funds, pension funds, insurers, financial institutions, banks, and any such institution as may be prescribed: Provided that the Central Government shall hold at least twenty-six per cent. of the shares of the Institution at all times.
(4) The Board may, with the prior approval of the Central Government, reduce its share capital, including by way of buy-back of shares.

PDF: pending for this language.