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    Question

    What is the restriction on commission, brokerage, discount, etc., on sale of shares as per the Banking Regulation Act?

    A Banking company can pay any amount exceeding in the aggregate two and one-half per cent of the price at which the shares are issued Correct Answer Incorrect Answer
    B Banking company cannot pay any amount exceeding in the aggregate two and one-half per cent of the price at which the shares are issued Correct Answer Incorrect Answer
    C Banking company cannot pay any amount exceeding in the aggregate three and one-half per cent of the price at which the shares are issued Correct Answer Incorrect Answer
    D Banking company cannot pay any amount less than three and one-half per cent of the price at which the shares are issued Correct Answer Incorrect Answer
    E Banking company may pay such amount as the Board of Directors of the company may decide in it meeting Correct Answer Incorrect Answer

    Solution

    Section 13. Restriction on commission, brokerage, discount, etc., on sale of shares: Notwithstanding anything to the contrary contained in sections 76 and 79 of the Companies Act, 1956, no banking company shall pay out directly or indirectly by way of commission, brokerage, discount or remuneration in any form in respect of any shares issued by it, any amount exceeding in the aggregate two and one-half per cent. of the price at which the said shares are issued.

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