After section 25A of the principal Act, the following section shall be inserted, namely:- 

"25B. The Financial Corporation may receive gift, grants, donations or benefactions from Government or any other source.''. 

19. For section 26. of the principal Act, the following section shall be substituted, namely:- 

"26. On and from the commencement of the State Financial Corporations (Amendment) Act, 2000, the financial Corporation shall not enter into any arrangements under clause (a), (d) or (h) of sub-section (I) of section 25 with any industrial concern so that the total amount outstanding against that concern in respect of all such arrangements together with the amount of the face value of the shares and stocks of that concern whether subscribed or agreed to subscribed and the outstanding liabilities on account of underwriting agreements and the deferred payments guarantees more than- 

(i) five hundred lakhs of rupees in the case of a corporation established by or under any other law or a company as defined in section 3 of  the Companies Act, 1956 or a co-operative society registered under the Co-operative Societies Act, 1912 or any other law relating to co-operative societies for the time being in force; and 

(ii) two hundred lakhs of rupees in any other case: 
Provided that Financial Corporation may, with the prior approval of the Small Industries Bank, exceed the limit under clause (i) or clause (ii) up to four times.''. 

In section 28 of the principal Act, in sub-section(1), for clause (d), the following clause shall be substituted, namely:- 

"(d) grant any from of  assistance to any industrial concern in respect of which the aggregate of the paid-up share capital and free reserves exceeds ten crores of rupees or such higher amount not exceeding thirty crores of rupees as the state Government, on the recommendation of  the Small Industries Bank, may, by notification in the Official Gazette, specify.''. 

For section 34 of the principal Act, the following section shall be substituted, namely:- 

"34. The Financial corporation may invest its funds in accordance with applicable guidelines and prudential norms as may be prescribed and in such securities as the board may decide from time to time.''.