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    Question

    What happens to the shares of Indian insurance companies

    on the appointed day as per the General Insurance Business (Nationalization) Act, 1972?
    A They are distributed among policyholder Correct Answer Incorrect Answer
    B They are vested in the Reserve Bank of India Correct Answer Incorrect Answer
    C They are transferred to and vested in the State Government Correct Answer Incorrect Answer
    D They are transferred to and vested in the Central Government Correct Answer Incorrect Answer
    E Either a or b or c or d Correct Answer Incorrect Answer

    Solution

    Explanation: Section 4. Transfer of shares of Indian insurance companies: (1) On the appointed day, all the shares in the capital of every Indian insurance company shall, by virtue of this Act, stand transferred to and vested in the Central Government free of all trusts, liabilities and encumbrances affecting them.

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