Section 10 in The State Bank Of Hyderabad Act, 1956
10. [ Issued capital. [Substituted by Act 38 of 1959, Section 64 and Schedule III, for ss. 9 and 10 (w.e.f. 1-10-1959). ]
(1)The issued capital of the Hyderabad Bank shall, on the day on which the amendments to this Act made by the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), take effect, be of such amount as the State Bank, [in constitution with the Reserve Bank and with the Central Government], may fix in this behalf, so however that the amount shall be so fixed as to consist only of fully paid-up shares of one hundred rupees each.(1A)[ Notwithstanding anything contained in sub-section (1), the issued capital of the Hyderabad Bank, shall consist of such amount as the State Bank may, with the approval of the Reserve Bank, fix, and shall be divided into fully paid-up shares of such denomination in accordance with sub-section (2) of section 9.] [New sub-section inserted by The State Bank of India (Subsidiary Banks Laws) Amendment Act, 2007(30 of 2007) ](2)All shares in the issued capital of the Hyderabad Bank shall, on that day, vest in the State Bank.(3)[ The Hyderabad Bank may, from time to time, [with the approval of the State Bank and the Central Government in constitution with the Reserve Bank] [Substituted by The State Bank of India (Subsidiary Banks Laws) Amendment Act, 2007(30 of 2007) ], increase, whether by [public issue or rights issue] [Substituted by Act No. 17 of 2011.] or by preferential allotment or private placement in accordance with the procedure as may be specified by regulations made under section 63 of the State Bank of India (Subsidiary Banks) Act, 1959, its issued capital by issue of equity or preference shares.(3A)The issued capital of the Hyderabad Bank shall consist of equity shares or equity and preference shares: Provided that the issue of preference shares shall be in accordance with the guidelines framed by the Reserve Bank specifying the class of preference shares, the extent of issue of each class of such preference shares (whether perpetual or irredeemable or redeemable) and the terms and conditions subject to which, each class of preference shares may be issued.(3B)The Hyderabad Bank may, [with the approval of the State Bank and the Central Government in constitution with the Reserve Bank] [Substituted by Act No. 17 of 2011.], increase from time to time by way of issuing bonus shares to existing equity shareholders, its issued capital in such manner as the State Bank, [in constitution with the Reserve Bank and with the approval of the Central Government] [Substituted by Act No. 17 of 2011.], direct.(3C)No increase or reduction in the issued capital of the Hyderabad Bank shall be made in such a manner that the State Bank holds at any time less than fifty-one per cent. of the issued capital consisting of equity shares of the Hyderabad Bank.(3D)The Hyderabad Bank may accept the money in respect of shares issued towards increase in issued capital in instalments, make calls and forfeit unpaid shares and re-issue them, in the manner as may be specified by regulations made under section 63 of the State Bank of India (Subsidiary Banks) Act, 1959.](4)The State Bank shall, as soon as may be, after the determination, if any, of the amount of compensation by the Tribunal under the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), consider whether any increase or reduction of the issued capital of the Hyderabad Bank as fixed under sub-section (1) by way of adjustment by transfer from, or to, the reserves of the Hyderabad Bank or in any other manner, is necessary, expedient or appropriate and may, thereafter, with the approval of the Reserve Bank, direct the Hyderabad Bank to increase or reduce its issued capital.
