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    Question

    As per the Banking Regulation Act which of the following statements relating to the acquisition of qualification shares by managing directors of a banking company is true?

    A Managers of banking companies are required to acquire shares immediately upon appointment Correct Answer Incorrect Answer
    B Managers of banking companies are exempted from holding qualification shares Correct Answer Incorrect Answer
    C Managers of banking companies must acquire shares within one month of appointment Correct Answer Incorrect Answer
    D Managers of banking companies must acquire shares within six months of appointment Correct Answer Incorrect Answer
    E Managers of banking companies must acquire shares within one year of appointment Correct Answer Incorrect Answer

    Solution

    Section 10C. Chairman and certain directors not to be required to hold qualification shares: A chairman of the Board of directors who is appointed on a whole-time basis or a managing director] of a banking company (by whomsoever appointed) and a director of a banking company (appointed by the Reserve Bank under section 10A) shall not be required to hold qualification shares in the banking company.

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