Restriction on commission, brokerage, discount, etc., on sale of shares
Section 13 of the Banking Regulation Act, 1949 deals with restriction on commission, brokerage, discount, etc., on sale of shares. Notwithstanding anything to the contrary contained in [sections 76 and 79 of the Companies Act, 1956] (1 of 1956), no banking company shall pay out directly or indirectly by way of commission, brokerage, discount or remuneration in any form in respect of any shares issued by it, any amount exceeding The Act came into force on 16 Mar 1949.
Notwithstanding anything to the contrary contained in 1[sections 76 and 79 of the Companies Act, 1956] (1 of 1956), no banking company shall pay out directly or indirectly by way of commission, brokerage, discount or remuneration in any form in respect of any shares issued by it, any amount exceeding in the aggregate two and one-half per cent. of the 2[price at which the said shares are issued].
3[Explanation.--For the removal of doubts, it is hereby declared that the expression "price at which the said shares are issued" shall include amount or value of premium on such shares.]
Section 13, The Banking Regulation Act, 1949 (Act 10 of 1949).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Questions about Section 13
What does Section 13 of the Banking Regulation Act deal with?
Section 13 of the Banking Regulation Act is headed "Restriction on commission, brokerage, discount, etc., on sale of shares". Notwithstanding anything to the contrary contained in [sections 76 and 79 of the Companies Act, 1956] (1 of 1956), no banking company shall pay out directly or indirectly by way of commission, brokerage, discount or remuneration in any form in respect of any shares issued by it, any amount exceeding
How do I find court cases under Section 13 of the Banking Regulation Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Banking Regulation Act 1949 13, section 13 Banking Regulation Act 1949, section 13 of the Banking Regulation Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 13 of the Banking Regulation Act, and has it changed?
1 other provision in this corpus refers back to it.
When did Section 13 of the Banking Regulation Act come into force?
Section 13 of the Banking Regulation Act, cited as Banking Regulation Act 1949 13, came into force on 16 Mar 1949, having been enacted on 10 Mar 1949. It is in force as at the date shown on this page.
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Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 14 Oct 2026. This page is not a substitute for legal advice.