20A. Free transferability of shares.—(1) Save as otherwise provided in sub-section (2), the equity
shares of the Small Industries Bank shall be freely transferable.
(2) Nothing contained in sub-section (1) shall entitle the Development Bank, the public sector banks,
the General Insurance Corporation, the Life Insurance Corporation and other institutions owned or
controlled by the Central Government to transfer any shares held by them in the Small Industries Bank if
such transfer will result in reducing the equity shares held in aggregate by them to less than fifty-one per
cent. of the issued equity share capital of the Small Industries Bank.
1. The words “and the Development Bank” omitted by Act 7 of 2000, s. 11 (w.e.f. 27-3-2000).
2. Ins. by s. 12, ibid. (w.e.f. 27-3-2000).
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20B. Register of shareholders.—(1) The Small Industries Bank shall keep at its head office a
register, in one or more books, of the shareholders and shall enter therein the following particulars so far
as they may be available, namely:—
(i) the names, addresses and occupations, if any, of the shareholders and a statement of the shares
held by each shareholder, distinguishing each share by its denoting number;
(ii) the date on which each person is so entered as a shareholder;
(iii) the date on which any person ceases to be a shareholder; and
(iv) such other particulars as may be prescribed:
Provided that nothing in this sub-section shall apply to the shares held with a depository under the
Depositories Act, 1996 (22 of 1996).
(2) Notwithstanding anything contained in sub-section (1), it shall be lawful for the Small Industries
Bank to keep the register of the shareholders in computer floppies, diskettes, compact disk or any other
electronic form, subject to such safeguards, as may be prescribed.
(3) Notwithstanding anything contained in the Indian Evidence Act, 1872 (1 of 1872), a copy of, or
extract from, the register of the shareholders, certified to be a true copy under the hand of an officer of the
Small Industries Bank authorised in this behalf, shall, in all legal proceedings, be admissible in evidence.
(4) The Register of beneficial owners maintained by a depository under section 11 of the Depositories
Act, 1996 (22 of 1996) shall be deemed to be a Register of the shareholders for the purposes of this Act.
20C. Trust not to be entered on the register of shareholders.—Notwithstanding anything
contained in section 20B, no notice of any trust, express, implied or constructive, shall be entered on the
register of shareholders or be receivable by the Small Industries Bank:
Provided that nothing in this section shall apply to a depository in respect of the shares held by it as a
registered owner on behalf of a beneficial owner.
Explanation.—For the purposes of section 20B and this section, the expressions “beneficial owner”,
“depository” and “registered owner” shall have the meanings respectively assigned to them in clauses (a),
(e) and (j) of sub-section (1) of section 2 of the Depositories Act, 1996 (22 of 1996).
20D. Board’s right to refuse registration of transfer of shares.—(1) The Board may refuse to
register the transfer of any shares in the name of the transferee on any one or more of the following
grounds, and on no other ground, namely:—
(a) the transfer of the shares is in contravention of the provisions of this Act or regulations made
thereunder or any other law;
(b) the transfer of the shares, in the opinion of the Board, is prejudicial to the interests of the
Small Industries Bank or to the public interest;
(c) the transfer of shares is prohibited by an order of a court, tribunal or any other authority under
any law for the time being in force.
(2) The Board shall, before the expiry of two months from the date on which the instrument of
transfer of shares of the Small Industries Bank is lodged with it for the purpose of registration of such
transfer, not only form, in good faith, its opinion as to whether such registration ought not or ought to be
refused on any of the grounds referred to in sub-section (1) but also,—
(a) if it has formed the opinion that such registration ought not to be so refused, effect such
registration; and
(b) if it has formed the opinion that such registration ought to be refused on any of the grounds
mentioned in sub-section (1), intimate the transferor and the transferee by notice in writing.
(3) An appeal against the order of refusal of the Board under sub-section (2) shall lie to the Central
Government and the procedure for filing and hearing of such appeal shall be in accordance with the rules
made by the Central Government in this behalf.
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20E. Shares to be securities under the Indian Trusts Act, 1882.—Notwithstanding anything
contained in the Indian Trusts Act, 1882 (2 of 1882), the shares of the Small Industries Bank shall be
deemed to be included among the securities enumerated in section 20 of the said Act.