<h2The State Financial Corporation Act,1951
Section 28. Prohibited business
The Financial corporation shall not–
(a) Accept deposits, except as provided by this Act;
(b) Subscribe directly to the shares or stock of any company:
Provided that nothing in clause (b) shall affect the right of the Financial Corporation to acquire any shares, bonds or debentures of a company in fulfilment of any underwriting agreement entered into by the Financial Corporation;
(c) Grant any loan or advance on the security of its own shares.
