The Banking Regulation Act,1949
Section 13. Restriction on commission, brokerage, discount, etc. on sale of shares
Notwithstanding anything to the contrary contained in 1[sections 76 and 79 of the Companies Act,1956 (1 of 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 paid-up value of the said shares.
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1. Subsituted by Act 95 of 1956, Section 14 and Schedule I, for “section 105 and 105A of the Indian Companies Act,1913 (7 of 1913)” w.e.f. 14-1-1957.
