Section 20B of The Small Industries Development Bank of India Act, 1989
1[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.]
Summary
- The bank must keep a detailed register of its shareholders at its head office.
- This register tracks names, addresses, occupations, the exact share numbers held by each person, and the dates they became or stopped being shareholders.
- The bank is allowed to keep this register in an electronic format like computer floppies, diskettes, or compact disks, subject to certain safeguards.
- A copy of this register, if certified as true by an authorised officer of the bank, is admissible as evidence in all legal proceedings.
- The register rules do not apply to shares held with a depository, because the depository's own register of beneficial owners is legally treated as the bank's register for those shares.
Practical examples
FAQ
1. Where must the bank keep its register of shareholders?
It must be kept at the bank's head office.
2. Does the register have to be a physical paper book?
No, it is lawful to keep it in computer floppies, diskettes, compact disks, or other electronic forms.
3. What happens if I hold my shares through an electronic depository?
If shares are held with a depository, the bank's own register requirements do not apply. The depository's register of beneficial owners is treated as the official register of shareholders.
Test yourself
Q1.Under Section 20B of The Small Industries Development Bank of India Act, 1989, which of the following details is NOT explicitly required to be recorded in the register of shareholders?
Q2.Under Section 20B of The Small Industries Development Bank of India Act, 1989, where must the register of shareholders be kept?
Q3.Under Section 20B of The Small Industries Development Bank of India Act, 1989, under what condition is the bank's electronic register acceptable in a court of law?
Q4.Under Section 20B of The Small Industries Development Bank of India Act, 1989, how does the law treat shares managed by a depository under the Depositories Act, 1996?