https://www.taxtmi.com/circulars?id=10797 Banks must ensure advances secured by shares (above an exempted limit) result in transfer of the shares into the bank's name with exclusive voting rights exercisable without restriction; where contractual restraints exist banks must notify borrowers, substitute agreements removing such restraints or recall the advance if borrowers refuse. Composite securities must be segregated to apply share-specific rules; advances against partly paid shares require prior regulatory approval; voting by banks on pledged shares is restricted without prior authorization. Short-term broker-held shares and smaller advances are exempted to avoid operational hardship. en-us Wed, 30 Sep 1970 00:00:00 +0530 Fri, 17 Jun 2011 11:01:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=10797 Banks must ensure advances secured by shares (above an exempted limit) result in transfer of the shares into the bank's name with exclusive voting rights exercisable without restriction; where contractual restraints exist banks must notify borrowers, substitute agreements removing such restraints or recall the advance if borrowers refuse. Composite securities must be segregated to apply share-specific rules; advances against partly paid shares require prior regulatory approval; voting by banks on pledged shares is restricted without prior authorization. Short-term broker-held shares and smaller advances are exempted to avoid operational hardship. Circulars Companies Law Wed, 30 Sep 1970 00:00:00 +0530 https://www.taxtmi.com/circulars?id=10797