Section 7(4) in The State Financial Corporations (Amendment) Act, 2000
(4)The Board shall, before the expiry of two months from the date on which the instrument of transfer of shares of the Financial Corporation is lodged with it for the purpose of registration of such registration ought not or ought to be refused on any of the grounds referred to in sub- section (3) but also,- transfer, not only form, in good faith, its opinion as to whether such(a) if it has formed the opinion that such registration ought not to be so refused, effect such registration; and(b)if it has formed the opinion that such registration ought to be refused on any of the grounds mentioned in sub- section (3), intimate the transferor and the transferee by notice in writing.
