Directive issued by Reserve Bank for obtaining bank loans against security of company shares

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....serve Bank issued a directive to all commercial banks to regulate their advances against shares. Henceforth, on September 9, 1970 every commercial, bank, which grants or renews an advance limit of every Rs. 50,000 against the security of shares to a borrower, shall stipulate that the shares shall be transferred to its name and that it shall have exclusive voting rights in respect thereof which it ....

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....of the bank but there are any restrictions on the exercise of voting rights or any obligation is cast on it to issue proxies. In case the borrower is not agreeable to the revised terms, the bank shall recall the advance forthwith if repayable on demand and, on the expiry of its term, if it is a term loan. If shares form a security composite with any other security, the advance limit against ....