Amendment status not verified — confirm the current text below against the official source.
(1) [The Development Bank shall function as the principal financial institution for co-ordinating the working of institutions engaged in financing, promoting or developing industry and for assisting the development of such institutions in such manner as it may deem appropriate and may] carry on and transact any of the following kinds of business, namely:-- (a) granting loans and advances to-- (i) the Industrial Finance Corporation, any State Financial Corporation or any other financial institution [which may be approved by the Board in this behalf] by way of refinance of any loans or advances granted to industrial concerns [x x x x] by such Corporation or institution which are repayable [within a period not exceeding twenty-five years]; (ii) any scheduled bank or State Co-operative Bank, by way of refinance of any loans or advances granted to industrial concerns [x x x x] by such bank which are repayable [within a period not exceeding fifteen years]; (iii) any scheduled bank or State Co-operative Bank or the Industrial Finance Corporation or any State Financial Corporation or any other financial institution which may be notified by the Central Government in this behalf, by way of refinance of any loans or advances granted to industrial concerns [x x x x] or group of industrial concerns by such bank or institution which are for the purpose of, or in connection with, the export of capital goods, commodities or merchandise from India [or the execution of any turnkey project outside India by any industrial concern as aforesaid or by any person in India, and, in any case, are repayable-- (i) within a period not exceeding twelve years in the case of persons outside India, and (ii) within a period not exceeding fifteen years in the other cases]; (b) subject to such conditions as may be prescribed, accepting, discounting, or re-discounting bills of exchange and [promissory notes made, drawn, accepted or endorsed by industrial concerns or by any person selling capitals goods manufactured by one industrial concern]; (c) subscribing to or purchasing stocks, shares, bonds or debentures of the Industrial Finance Corporation, any State Financial Corporation or [any other financial institution whether within or outside India].[which may be approved by the Board in this behalf ]; [(ca) granting letters of credit or loans and advances to the Industrial Finance Corporation, any State Financial Corporation or any other financial institution [which may be approved by the Board in this behalf], for the purpose of any business of such Corporation or institution]; (d) granting loans and advances to any industrial concern or subscribing to, or purchasing, or underwriting the issue of, stocks, shares, bonds or debentures of any industrial concern: Provided that nothing contained in this clause shall be deemed to preclude the Development Bank from granting loans or advances to, or subscribing to debentures of, industrial concern, [the amounts outstanding thereon may be convertible at the option of the Development Bank] into stocks or shares of that concern within the period the loan, advance or debenture is repayable; Explanation.-- In this clause, the expression "the amounts outstanding thereon" used in relation to any loan or advance, shall mean the principal, interest and other charges payable on such loan or advance as at the time when the amounts are sought to be converted into stocks or shares. [(da) granting loan and advances-- (i) to any person exporting products of industrial concerns; or (ii) to any person outside India, in connection with the export of capital goods from India; or (iii) for the execution of turn-key projects outside India by any industrial concern or by any person in India; (db) transferring for consideration any instrument relating to loans and advances granted by it to industrial concerns;] [(dc) granting loans and advances to any person for purposes of investment in any industrial concern;] (e) guaranteeing deferred payments due from any industrial concern; (f) guaranteeing-- (i) loans raised by industrial concerns which are floated in the public market; and (ii) loans raised by industrial concerns from any scheduled bank or State Co-operative Bank or the Industrial Finance Corporation or any State Financial Corporation or any other financial institution [which may be approved by the Board in this behalf]; (g) guaranteeing the obligations of any scheduled bank or State Co-operative Bank or the Industrial Finance Corporation or any State Financial Corporation or any other financial institution [ which may be approved by the Board in this behalf] arising out of, or in connection with, underwriting the issue of stocks, shares, bonds or debentures of any industrial concern; [(ga) granting, opening, issuing, confirming or endorsing letters of credit and negotiating or collecting bills and other documents drawn thereunder; (gb) providing consultancy and merchant banking services in or outside India; (gc) acting as the trustee for the holders of debentures or other securities; (gd) acquiring, with the approval of the Central Government, the undertaking, including the business, assets and liabilities of any institution the principal object of which is the promotion or development of industry in India, or the grant of financial assistance for such promotion or development;] (h) undertaking research and surveys for evaluating or dealing with marketing or investments and undertaking and carrying on techno-economic studies in connection with the development of industry; (i) providing technical [, legal, marketing] and administrative assistance to any industrial concern or any person for promotion, management or expansion of any industry; (j) planning, promoting and developing industries to fill up gaps in the industrial structure in India; [(k) promoting, forming or conducting or associating in the promotion, formation or conduct of companies, subsidiaries, societies, trusts or such other associations of persons as it may deem fit;] [(ka) acting as agent of-- (i) the Central Government or of the Reserve Bank, or (ii) such other Government or person as the Central Government [In consultation with] the Reserve Bank, may authorise;] (l) performing functions entrusted to, or required of, the Development Bank by this Act or by any other law for the time being in force; (m) doing any other kind of business which the Central Government, [x x x x] may authorise; (n) generally doing such other acts and things as may be incidental to, or consequential upon, the exercise of its powers or the discharge of its duties under this Act or any other law for the time being in force including sale or transfer of any of its assets. (2) The Development Bank may receive in consideration of any of the services mentioned in sub-section (1) such commission, brokerage, interest, remuneration or fees as may be agreed upon. (3) The Development Bank shall not grant any loan or advance or other financial accommodation on the security of its own bonds or debentures. Subs. by Act 52 of 1975, sec. 11, for "The Development Bank may" (w.e.f. 16/02/1976). Subs. by Act 5 of 1995, sec. 12, for "which may be notified by the Central Government in this behalf" (w.r.e.f. 12/10/1994). Certain words ins. by Act 75 of 1972, sec.3 and omitted by Act 52 of 1975, sec. 11 (w.e.f. 16/02/1976). Subs. by Act 75 of 1972, sec. 3, for "on the expiry of not less than three years and not more than twenty-five years". Subs. by Act 75 of 1972, sec. 3, for "on the expiry of not less than three years and not more then ten years". Subs. by Act 75 of 1972, sec.3, for "and are repayable on the expiry of not less than six months and not more than ten years". Subs. by Act 75 of 1972, sec. 3, for "promissory notes of industrial concerns". Subs. by Act 75 of 1972, sec. 3, for "any other financial institution". Subs. by Act 5 of 1995, sec. 12, for "which may be notified by the Central Government in this behalf" (w.r.e.f. 12/10/1994). Ins. by Act 35 of 1986. sec. 7 (w.e.f. 14/08/1986). Subs. by Act 75 of 1972, sec. 3, for "which may at the option of the Development Bank be convertible". Ins. by Act 75 of 1972, sec. 3. Ins. by Act 35 of 1986, sec. 7 (w.e.f. 14/08/1986). Subs. by Act 5 of 1995, sec. 12, for "which may be notified by the Central Government in this behalf" (w.r.e.f. 12/10/1994). Ins. by Act 35 of 1986, sec. 7 (w.e.f. 14/08/1986). Subs. by Act 35 of 1986, sec. 7 (w.e.f. 14/08/1986). Ins. by Act 75 of 1972, sec. 3. Subs. by Act 52 of 1975, sec. 11, for "on the recommendation of ". The words "on the recommendation of the Reserve Bank" omitted by Act 52 of 1975, sec. 11.