State Financial Corporations Act : Shares to be guaranteed by the State Government and to be trust

State Financial Corporations Act,1951

Act No : 63

Section : Shares to be guaranteed by the State Government and to be trust orapproved securities.

6. Shares to be guaranteed by the State Government and to be trust or approved securities. (1) The shares of the Financial Corporation shall be guaranteed by the State Government as to the repayment of principal and the payment of annual dividend at such minimum rate as the State Government may, with the approval of the Central Government, fix by notification published in the Official Gazette at the time of issuing the shares. (2) Notwithstanding anything contained in the Acts hereinafter mentioned in this sub-section, 6*[the shares of the Financial Corporation, and such of the bonds and debentures issued by it as are guaranteed by the State Government as to the repayment of the principal and payment of interest, and receipts issued by it for such of the deposits as are guaranteed by the State Government as to the repayment of the principal and payment of interest, shall] be deemed to be included among the securities enumerated in section 20 of the Indian Trusts Act, 1882 (2 of 1882), and also to be approved securities for the purposes of the Insurance Act, 1938 (4 of 1938), and the 6*[Banking Regulation Act, 1949 (10 of 1949)]. ---------------------------------------------------------------------- 1. Ins. by Act 52 of 1975, s. 27 (w.e.f. 16-2-1976). 2. Ins. by s. 28, ibid. (w.e.f. 16-2-1976). 3. Ins. by Act 56 of 1956, s. 5. 4. Ins. and omitted by Act 43 of 1985, s. 5 5 Subs. by s. 6, ibid. 74