Section 3B of The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970
1 [3B. Register of beneficial owners.--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 shareholders for the purpose of this Act. Explanation.--For the purposes of section 3, section 3A 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).]
Summary
- A digital record of actual share owners (beneficial owners) that is kept by a depository acts as the bank's official shareholder register.
- This record must be maintained in accordance with section 11 of the Depositories Act, 1996.
- The specific legal definitions for terms like beneficial owner, depository, and registered owner come from section 2 of the Depositories Act, 1996.
- These specific definitions apply directly when reading section 3, section 3A, and section 3B of this banking law.
Practical examples
FAQ
1. Does the bank need a separate physical book if a depository tracks the share owners?
No, the register of beneficial owners maintained by the depository is deemed to be the register of shareholders.
2. Which outside law defines the key terms used in this section?
The Depositories Act, 1996 provides the legal definitions for these terms.
3. Which sections of this banking law rely on these outside definitions?
The definitions specifically apply to section 3, section 3A, and section 3B.
Test yourself
Q1.Under Section 3B of The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, what document is legally deemed to be a register of shareholders?
Q2.Under Section 3B of The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, which outside law provides the definition for a beneficial owner?
Q3.According to the explanation in Section 3B of The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, the definitions from the Depositories Act apply to which specific provisions of the banking law?
Q4.Under Section 3B of The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, the depository's register must be maintained under which specific section of the Depositories Act, 1996?