Multiple choice

What is the amount of ceiling on payment of brokerage or commission or discount, or remuneration on sale of shares by a banking company?

  1. 1% of the authorized capital

  2. 2% of the issued capital

  3. 2.5% of the paid value of the shares

  4. 5% of the subscribed share capital

  5. There is no ceiling.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

According to the section 13 of Banking Regulation Act, 1949, notwithstanding anything to the contrary contained in [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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