THE STATE FINANCIAL CORPORATIONS (AMENDMENT) ACT,2000
Insertion of new section 41 B

After section 41A of the principal Act, the following section shall be inserted, namely:- 

"41B. (1) Notwithstanding anything contained in any other law for the time being in force, where a nomination in respect of any deposits, bonds or other securities is made in the prescribed manner, the amount due on such deposits, bonds or securities shall, on the death of the depositor or holder there of, vest in, and be payable to, the nominee subject any right, title or interest of any other person to such deposits, bonds or securities. 

(2) Any payment by the Financial Corporation in accordance with the provisions of sub-section (1) shall constitute a full discharge to the Financial Corporation of its liability in respect of such deposits, bonds or securities.''. 


Amendment of section 43

In section 43 of the principal Act, in the first proviso, the words and Figure ``section 6 or'' shall be omitted. 

Amendment of section 43 B

In section 43B of the principal Act, sub-section (2) shall be omitted.

Amendment of section 46 A

In section 46A of the principal Act, in sub-section (1), for the words "Development Bank'', the words "Small Industries Bank'' shall be substituted. 

Omission of section 47

Section 47 of the principal Act shall be omitted. 

Amendment of section 48

In section 48 of the principal Act,- 
(i) in sub-section 91), for the words ``Development Bank'', the words ``Small Industries Bank'' shall be substituted; 

(ii) in sub-section (2).- 

(a) after clause (c), the following clauses shall be inserted, namely:- 
"(ca) the maintenance of register of shareholders, particulars to be entered in such register, the safeguards to be observed in the maintenance of register of shareholders on computer floppies or diskettes, compact disk or any other electronic form the inspection and closure of the register of shareholders and all other matters connected therewith under section 6; 

(cb) the manner of nomination of directors under clause (d) of section 10; 

(cc) the entrusting or delegation of duties to the managing director by the Board under clause (c) of sub-section (1) of section 17; 

(cd) the functions of Executive Committee under sub-section (2) of section 18; 

(ce) the guidelines and prudential norms in accordance with which investment may be made under section 34; 

(cf) the manner in which nomination may be made under section 41B; and 

(cg) the investments (whether by way of deposits in bank or otherwise) of the amounts which are not for the time being required for transaction of business.''. 

(b) after clause (n), the following clauses shall be inserted, namely:- 
"(o) the form and manner in which the balance-sheet and the  accounts of the Financial Corporation shall be prepared; 

(p) any other matter which is to be, or may be, prescribed.''. 


Amendment of section 48 A

In section 48A of the principal Act, the words ``Every rule made under section 47 and'' shall be omitted. 

Insertion of new section 48 B

 After section 48A of the principal Act, the following section shall be inserted, namely:- 

"48B.  Power to make rules

(1) The Central Government may, be notification in the Official Gazette, make rules for carrying out the provisions of this Act. 

(2) In particular, and without prejudice to the generality of the foregoing power such rules may provide for the procedure for filling and hearing of appeals under sub-section (5) of section 5. 

(3) Every rule made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.''