Section 4 in The Small Industries Development Bank Of India Act, 1989
4. [ Authorised capital
.-(1) The authorised capital of the Small Industries Bank shall be one thousand crores of rupees divided into seventy five crores fully paid-up equity shares of rupees ten each and twenty-five crores fully paid-up redeemable preference shares of rupees ten each:Provided that the Central Government may, on the recommendation of the Board, by notification, increase the authorised capital to an amount not exceeding two thousand crores of rupees consisting of such number of equity shares and redeemable preference shares as it may deem fit.][4-A. Conversion of equity shares into redeemable preference shares.-(1) The Central Government may, at any time after the commencement of the Small Industries Development Bank of India (Amendment) Act, 2000, by notification, convert such number of equity shares held by the Development Bank, the public sector banks, the General Insurance Corporation, the Life Insurance Corporation and other institutions owned or controlled by the Central Government, not exceeding twenty-five crores, as it may decide, into redeemable preference shares:Provided that such conversion shall in no case reduce the equity shares held in aggregate by the Development Bank, the public sector Banks, the General Insurance Corporation, the Life Insurance Corporation and other institutions owned or controlled by the Central Government to less than fifty-one per cent.(2)The redeemable preference shares referred to in sub-section (1) shall-(a)carry such fixed rate of dividend as the Central Government may specify at the time of such conversion, and(b)neither be transferable nor carry any voting rights.(3)The redeemable preference shares referred to in sub-section (1) shall be redeemed by the Small Industries Bank within three years from the date of such conversion in such instalments and in such manner as the Board may determine.
