153B. Declaration as to shares and debentures held in trust .-
(1)Notwithstanding anything contained in section 153, where any shares in, or debentures of, a company are held in trust by any person (hereinafter referred to as the trustee), the trustee shall, within such time and in such form as may be prescribed, make a declaration to the public trustee.(2)A copy of the declaration made under sub-section (1) shall be sent by the trustee to the company concerned, within twenty-one days, after the declaration has been sent to the public trustee.(3)(a)If a trustee fails to make a declaration as required by this section, he shall be punishable with fine which may extend to five thousand rupees and in the case of a continuing failure, with a further fine which may extend to one hundred rupees for every day during which the failure continues.(b)If a trustee makes in a declaration aforesaid any statement which is false and which he knows or believes to be false or does not believe to be true, he shall be punishable with imprisonment for a term which may extend to two years and also with fine.(4)The provisions of this section and section 187-B shall not apply in relation to a trust-(a)where the trust is not created by instrument in writing; or(b)even if the trust is created by instrument in writing [where the value of the shares in, or debentures of, a company, held in trust]-(i)does not exceed one lakh of rupees, or(ii)exceeds one lakh of rupees but does not exceed either five lakhs of rupees or twenty-five per cent of the paid-up share capital of the company, [whichever is less, or] [ Substituted by Act 5 of 1997, Section 6, for " whichever is less" (w.e.f. 1.3.1997).](c)[ where the trust is created, to set up a Mutual Fund or Venture Capital Fund or such other fund as may be approved by the Securities and Exchange Board of India established under sub-section (1) of section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992).] [ Inserted by Act 5 of 1997, Section 6 (w.e.f. 1.3.1997).][Explanation [ Inserted by Act 31 of 1965, Section 16 (w.e.f. 15.10.1965).].-The expression "the value of the shares in, or debentures of, a company" in clause (b) means,-(i)in the case of shares or debentures acquired by way of allotment or transfer for consideration, the cost of acquisition thereof, and(ii)in any other case, the paid-up value of the shares or debentures.](5)[ The provisions of this section shall not apply on and after the commencement of the Companies (Amendment) Act, 2000.] [ Inserted by Act 53 of 2000, Section 64 (w.e.f. 13.12.2000).]
