10. Transferability of shares.—(1) Save as otherwise provided in sub-section (2), the shares of the
State Bank shall be freely transferable.
(2) Nothing contained in sub-section (1) shall entitle the 1
[Central Government] to transfer any shares
held by it in the State Bank if such transfer will result in reducing the shares held by it to less than 2
[fifty1. Subs. by Act 32 of 2007, s. 4, for “Reserve Bank” (w.e.f. 29-6-2007).
2. Subs. by 27 of 2010, s. 5, for “fifty-five per cent. of the issued capital” (w.e.f. 15-9-2010).
8
one per cent. of the issued capital consisting of equity shares,] of the State Bank.
1
[10A. Right of registered shareholders to nominate.—(1) Every individual registered shareholder
may, at any time, nominate, in the prescribed manner, an individual to whom all his rights in the shares
shall vest in the event of his death.
(2) Where the shares are registered in the name of more than one individual jointly, the joint holders
may together nominate in the prescribed manner, an individual to whom all their rights in the shares shall
vest in the event of the death of all the joint holders.
(3) Notwithstanding anything contained in any other law for the time being in force or in any
disposition, whether testamentary or otherwise, where a nomination in respect of shares is made in the
prescribed manner and which purports to confer on the nominee the right to vest the shares, the nominee
shall, on the death of the shareholder or, as the case may be, on the death of all the joint holders, become
entitled to all the rights of the shareholder or, as the case may be, of all the joint holders, in relation to
such shares and all other persons shall be excluded unless the nomination is varied or cancelled in the
prescribed manner.
(4) Where the nominee is a minor, it shall be lawful for the individual registered holder of the shares
to make nomination to appoint, in the prescribed manner, any person to become entitled to the shares in
the event of his death during the minority of the nominee.]
2
[11. Restrictions on voting rights.—No shareholder, other than the 3
[Central Government], shall be
entitled to exercise voting rights in respect of any shares held by him in excess of ten per cent. of the
issued capital:
Provided that such shareholder shall be entitled to exercise voting rights at such higher percentage as
the Central Government may, after consultation with the 3
[Central Government], specify.]
4
[Provided further that the shareholder holding any preference share capital in the State Bank shall, in
respect of such capital, have a right to vote only on resolutions placed before the State Bank which
directly affect the rights attached to his preference shares:
Provided also that no preference shareholder, other than the Central Government, shall be entitled to
exercise voting rights in respect of preference shares held by him in excess of ten per cent, of total voting
rights of all the shareholders holding preference share capital only.]
12. Shares to be approved securities.—Notwithstanding anything contained in the Acts hereinafter
mentioned in this section, the shares of the State Bank shall be deemed to be included among the
securities enumerated in section 20 of the Indian Trusts Act, 1882 (2 of 1882), and also to be approved
securities for the purposes of the Insurance Act, 1938 (4 of 1938), and the 5
[Banking Regulations Act,
1949 (10 of 1949)].
6
[13. Register of shareholders.—(1) The State Bank shall keep at its Central Office, a register, in
one or more books of the shareholders, and shall enter therein the following particulars so far as they may
be available:—
(i) the names, addresses and occupations, if any, of the shareholders and a statement of the shares
held by each shareholder, distinguishing each share by its denoting number;
(ii) the date on which each person is so entered as a shareholder;
(iii) the date on which any person ceases to be a shareholder; and
(iv) such other particulars as may be prescribed.
7
[Provided that nothing in this sub-section shall apply to the shares held with a depository.]
1. Ins. by Act 27 of 2010, s. 6 (w.e.f. 15-9-2010).
2. Subs. by Act 3 of 1994, s. 3, for section 11 (15-10-1993).
3. Subs. by Act 32 of 2007, s. 5, for “Reserve Bank” (w.e.f. 29-6-2007).
4. Ins. by Act 27 of 2010, s. 7 (w.e.f. 15-9-2010).
5. Subs. by Act 3 of 1994, s. 4, for “Banking Companies, 1949” (w.e.f. 15-10-1993).
6. Subs. by s. 13, ibid., for section 13 (w.e.f. 15-10-1993).
7. Ins. by Act 8 of 1997, s. 3 (w.e.f. 15-1-1997).
7. Ins. by Act 33 of 1955, s. 4 (w.e.f. 21-9-1955).
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(2) Notwithstanding anything contained in sub-section (1), it shall be lawful for the State Bank to
keep the register of shareholders 1
[in computer floppies or diskettes or any other electronic form] subject
to such safeguards as may be prescribed.
(3) Notwithstanding anything contained in the Indian Evidence Act, 1872 (1 of 1872), a copy of, or
extract from, the register of shareholders, certified to be a true copy under the hand of an officer of the
State Bank authorised in this behalf, shall, in all legal proceedings, be admissible in evidence.]
2
[13A. Register of beneficial owners.—The register of beneficial owners maintained by a depository
under section 11 of the Depositories Act, 1996 (22 of 1996), shall be deemed to be a register of
shareholders for the purposes of this Act.]
14. [Branch registers.]Omitted by the State Bank of India (Amendment) Act, 1993 (3 of 1994), s. 6
(w.e.f. 15-10-1993).
3
[15. Trusts not to be entered on the register of shareholders.—No notice of any trust, express,
implied or constructive, shall be entered on the register of shareholders or be receivable by the State
Bank.]
4
[Provided that nothing in this section shall apply to a depository in respect of shares held by it as a
registered owner on behalf of the beneficial owners.
Explanation.—For the purposes of section 13, section 13A and this section, the expressions
“beneficial owner”, “depository” and “registered owner” shall have the meanings respectively assigned to
them in clauses (a), (e) and (j) of sub-section (1) of section 2 of the Depositories Act, 1996 (22 of 1996).]