Section 20E of The Small Industries Development Bank of India Act, 1989
1[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.]
Summary
- Section 20E states that shares of the Small Industries Bank are legally considered valid securities under the Indian Trusts Act, 1882.
- This means these shares are officially listed as acceptable investments under section 20 of that Trust Act.
- Additionally, Section 20 of the Small Industries Development Bank of India Act allows the bank to receive gifts, grants, and donations from the Government or other sources.
Practical examples
FAQ
1. Can trust funds invest in the Small Industries Bank?
Yes, the shares are legally recognized as securities under the Indian Trusts Act, 1882.
2. Can the bank accept gifts?
Yes, Section 20 allows the bank to receive gifts, grants, and donations from any source.
3. Does the bank only accept money from the Government?
No, it can receive money from the Government or any other source.
Test yourself
Q1.Under Section 20E of The Small Industries Development Bank of India Act, 1989, how are the shares of the bank classified for trusts?
Q2.Under Section 20E and Section 20 of The Small Industries Development Bank of India Act, 1989, which combination of actions is legally permitted for the bank?
Q3.Under Section 20 of The Small Industries Development Bank of India Act, 1989, who can give a benefaction to the Small Industries Bank?
Q4.Under Section 20E of The Small Industries Development Bank of India Act, 1989, which specific law is mentioned regarding the bank's shares?