State Bank of India (Subsidiary Banks) Act,1959
Act No : 38
Section :
Power of the State Bank to make regulations.
63. Power of the State Bank of make regulations.-(1) The State Bank of may, with the approval of the Reserve Bank 3*[by notification in the official Gazette] make in respect of a subsidiary bank regulations, not inconsistent with this Act and the rules made thereunder, to provide for all matters for which provision is necessary or expedient for the purpose of giving effect to the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for-- (a) the powers and duties of the 4*[managing director] of the subsidiary bank; (b) the fees and allowances which may be paid to directors or others for attending any meetings of the Board of Directors or of its committees (including the executive committee) or other committees or for attending to any other work of the subsidiary bank; (c) the time and place at which, and the manner in which, the business of the Board of Directors of the subsidiary bank shall be transacted and the procedure to be followed at the meetings thereof; (d) the constitution of the executive committee of the subsidiary bank and the conditions and limitations subject to which the executive committee may exercise its powers and the procedure to be followed at the meetings thereof; (e) the formation of any other committees, whether of the Board of Directors of the subsidiary bank or otherwise, --------------------------------------------------------------------- 1. Ins. by Act 48 of 1973, s. 34 (w.e.f. 31-12-1973). 2. Subs. by Act 1 of 1984, s. 54 (w.e.f. 15-2-1984). 3. Ins. by Act 66 of 1988, s. 23 (w.e.f. 30-12-1988). 4. Subs. by Act 48 of 1973 s. 21, ibid., for "general manager" (w.e.f. 1-7-1974). 213 and the delegation of powers and functions of the Board to such committees and the conduct of business in such committees; (f) the nature of shares of the subsidiary bank, the manner in which, and the conditions subject to which, shares may be held and transferred and generally all matters relating to the rights and duties of shareholders; (g) the maintenance of share registers, and the particulars to be entered in such registers in addition to those specified in section 21, the inspection and closure of the registers and all other matters connected therewith; (h) the holding and conduct of elections under this Act and the final determination of doubts or disputes regarding the qualifications of candidates for election or regarding the validity of elections; (i) the manner in which general meetings shall be convened, the procedure to be followed thereat and the manner in which voting rights may be exercised; (j) the manner in which notices may be served on behalf of the subsidiary bank upon shareholders or other persons; (k) the payment of dividents, including interim dividends; (l) the delegation of powers and functions of the Board of Directors of the subsidiary bank to the 1*[managing director] or directors or officers or other employees of that bank; (m) the conditions and limitations subject to which the subsidiary bank may appoint officers, advisers and other employees and fix their remuneration and other terms and conditions of service; (n) the duties and conduct of officers, advisers and other employees of the subsidiary bank; (o) the establishment and maintenance of superannuation, pension, provident or other funds for the benefit of the officers or employees of the subsidiary bank or of the dependants of such officers or employees or for the purposes of the subsidiary bank, and the granting of superannuation allowances, annuities and pensions payable out of any such fund; --------------------------------------------------------------------- 1. Subs. by Act 48 of 1973, s. 21, for "general manager" (w.e.f. 1- 7-1974). 214 (p) the conduct and defence of legal proceedings by or against the subsidiary bank and the manner of signing pleadings; (q) the provision of a seal for the subsidiary bank and the manner and effect of its use; (r) the form and manner in which contracts binding on the subsidiary bank may be executed; (s) the conditions and requirements subject to which loans or advances may be made or bills may be discounted or purchased by the subsidiary bank; (t) the conditions subject to which loans or advances may be made by the subsidiary bank to its directors or officers or the relatives of such directors or officers or to companies, firms or individuals with which or with whom such directors or officers or relatives are connected as partners, directors, managers, servants, shareholders or otherwise; (u) the persons or authorities who shall administer any pension, provident or other fund constituted for the benefit of the officers or employees of the subsidiary bank or their dependants or for the purposes of that bank; (v) the circumstances in which the specific approval of the State Bank shall be required to the grant of loans and advances or investment of funds by the subsidiary bank or to any contract, arrangement or proposal entered into or proposed to be entered into by the subsidiary bank; (w) the preparation and submission to the State Bank and the Reserve Bank of statements of programmes of activities and financial statements of the subsidiary bank and the periods for which, and the time within which, such statements and estimates are to be prepared and submitted; (x) the person or persons in the State Bank by whom any powers, duties or functions conferred, imposed or entrusted on or to the State Bank under this Act may be exercised or performed; (g) generally, for the efficient conduct of the affairs of the subsidiary bank. 215 1*[(2A) All regulations made under this section shall have effect from such earlier or later date as may be specified in the regulations.] (3) All regulations under this section except the first regulations, shall be made in consultation with the Board of Directors of the subsidiary bank concerned. 2*[(4) Every regulation shall, as soon as may be after it is made under this act by the State Bank, be forwarded to the Central Government and that Government shall cause a copy of the same to be laid before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions, aforesaid, both Houses agree in making any modification in the regulation or both Houses agree that the regulation should not be made, the regulation shall thereafter have effect only in such modified form or be of no effect as the case may be so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that regulation.]
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