Section 12B(5) in The Banking Regulation Act, 1949
(5)Before issuing or allotting any share to any person or registering the transfer of shares in the name of any person, the banking company shall ensure that the requirements of sub-section (I) are complied with by that person and where the acquisition is with the approval of the Reserve Bank, the banking company shall further ensure that the' conditions imposed under sub-section (4), if any, of such approval are fulfilled.
