(1)Notwithstanding anything to the contrary contained in section 77 of the Companies Act, 1956 (1 of 1956), no banking company shall,-(a)grant any loans or advances on the security of its own shares, or(b)enter into any commitment for granting any loan or advance to or on behalf of-(i)any of its directors,(ii)any firm in which any of its directors is interested as partner, manager, employee or guarantor, or(iii)any company [not being a subsidiary of the banking company or a company registered under section 25 of the Companies Act, 1956 (1 of 1956), or a Government company of which [,or the subsidiary or the holding company ]of which any of the directors of the banking company is a director, managing agent, manager, employee or guarantor or in which he holds substantial interest, or(iv)any individual in respect of whom any of its directors is a partner or guarantor.
