MISCELLANEOUSCentral
Section 52 of The Small Industries Development Bank of India Act, 1989 in hindi
- (1)The Board may 1*** by notification, make regulations not inconsistent with the provisions of this Act to provide for all matters for which provision is necessary or expedient for the purpose of giving effect to the provisions of this Act.
- (2)In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for-- 2[(a) the removal of Director under sub-section (8) of section 6;
- (aa)the places of meetings of the Board under this Act and the procedure to be followed at such meetings including the quorum necessary for transaction of business and the manner of adoption of resolution under section 6;
- (ab)the functions to be discharged by the Executive Committee under sub-section (2) of section 12;
- (ac)the places of meetings of the Executive Committee and the procedure to be followed at such meetings under sub-section (4) of section 12;
- (ad)such fees and allowances which may be paid to the directors and members of the Executive Committee under section 12A;
- (ae)the particulars to be prescribed in the register of shareholders under clause (iv) of sub-section (1) of section 20B;
- (af)the procedure relating to maintenance of register of shareholders in electronic form under sub-section (2) of section 20B;
- (ag)the matters relating to the annual general meeting under sub-section (3) of section 20G;]
- (b)the form and manner in which the balance-sheets and the accounts of the Small Industries Development Assistance Fund under sub-section (1) of section 25 and the Small Industries Bank under sub-section (1) of section 28 shall be prepared;
- (c)the manner in which nominations may be made in terms of sub-section (1) of section 46;
- (d)generally the efficient conduct of the affairs of the Small Industries Bank;
- (e)any other matter which is to be, or may be, prescribed. 3[(3) Every rule made by the Central Government, and every regulation made by the Board 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 session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation 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 or regulation.]
Summary
- The Board of directors has the power to create regulations to help carry out the rules of the Act, as long as these regulations do not contradict the Act itself.
- These regulations are made public through an official notification.
- The regulations manage practical details, such as where the Board meets, the procedures for these meetings, and how a director can be removed by shareholders.
- The regulations also define the functions of the Executive Committee, where it meets, and the fees paid to non-official directors for attending these meetings.
- The regulations dictate how the shareholder register is kept, how annual general meetings are run, and the required formats for balance sheets and accounts.
- Every new regulation must be shown to both Houses of Parliament for thirty days, and Parliament has the final say to change or cancel the regulation.
Practical examples
1On August 12, 2026, the Board publishes a notification detailing exactly how much money a non-official director will be paid for traveling to a Board meeting in Mumbai, as permitted by the regulations.
2An investor named Priya wants to know how to properly submit a proposal for the upcoming annual general meeting on October 5, 2026, so she looks up the official regulations created by the Board that outline the exact meeting procedures.
FAQ
1. Who is responsible for making the regulations?
The Board of directors of the Small Industries Bank makes the regulations.
2. Can the Board create a regulation that ignores a rule in the Act?
No, the regulations must be completely consistent with the provisions of the Act.
3. Does anyone oversee the regulations the Board makes?
Yes, every regulation must be laid before both Houses of Parliament, which can agree to modify or cancel it.
4. Do the regulations cover employee salaries?
No, the listed powers for regulations focus on board meetings, committee functions, director fees, shareholder registers, and accounting formats, rather than general employee salaries.
Test yourself
Q1.Under Section 52 of The Small Industries Development Bank of India Act, 1989, which authority possesses the primary power to make regulations?
Q2.Under Section 52 of The Small Industries Development Bank of India Act, 1989, how long must a newly made regulation be laid before Parliament?
Q3.Under Section 52 and Section 6 of The Small Industries Development Bank of India Act, 1989, what specific detail regarding elected directors can the Board regulate?
Q4.Under Section 52, Section 12, and Section 12A of The Small Industries Development Bank of India Act, 1989, how do the regulations affect the Executive Committee?