State Bank of India (Subsidiary Banks) Act,1959

Act No : 38

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Section : Restriction on individual holdings.

19. Restriction on individual holdings.- (1) No person shall be registered as a shareholder in respect of any shares in a subsidiary bank held by him, whether in his own name or jointly with any other person, in excess of two hundred shares, or be entitled to payment of any dividend on the excess shares held by him, or to exercise any of the rights of a shareholder in respect of such excess shares otherwise than for the purpose of selling them: Provided that nothing contained in this sub-section shall apply to-- (a) the State Bank; (b) a State Government; 185 (c) a Corporation; (d) an insurer as defined in the Insurance Act, 1938 (4 of 1938); (e) a local authority; (f) a co-operative society; (g) a trustee of a public or private religious or charitable trust; (h) a shareholder of an existing bank who is allotted any shares under sub-section (9) of section 13. (2) Notwithstanding anything contained in sub-section (1), no person referred to in the proviso to that sub-section, other than the State Bank, shall be entitled to exercise voting rights in respect of any shares held by such person 1*[in excess of one per cent.] of the issued capital of the subsidiary bank concerned.

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