section 5
Authorised share capital.
The National Bank for Financing Infrastructure and Development Act, 2021Finance202148 sections7 chapters
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.
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