Bank of baroda

Regulations and Guidelines of SEBI
SEBI was established to protect the interests of public investors in securities and to promote the development of, and to
regulate, the Indian securities market. We are subject to SEBI regulations for our equity and debt capital issuances, as
well as our underwriting, banker to the issue, custodial, depositary participant, and debenture trusteeship activities. These
regulations provide for our registration with the SEBI for each of these activities, functions and responsibilities. We are
required to adhere to a code of conduct applicable for these activities.
Foreign Ownership Restrictions
Foreign investment in our Bank, as a corresponding new bank, is regulated by the provisions of the Bank Acquisition Act.
Under Section 3(2D), foreign investment in new corresponding banks is subject to an overall statutory limit of 20% of the
paid up capital. For public sector banks the RBI monitors the ceilings on Non-Resident investments on a daily basis. For
effective monitoring the RBI has fixed cut off points lower than the actual ceilings which is 18% for public sector banks.
Once the aggregate net purchase of equity shares reaches the cut off points further acquisition of equity shares by Non-
Residents to the ceiling of 20% requires approval of the RBI, beyond which Non-Residents are not allowed to acquire
shares.
Special Status of Banks in India
The special status of banks is recognised under various statutes including the Sick Industrial Companies Act, 1985,
Recovery of Debts Due to Banks and Financial Institutions Act, 1993, and the Securitisation Act. As a bank, we are
entitled to certain benefits under various statutes including the following:
The Recovery of Debts Due to Banks and Financial Institutions Act, 1993 provides for establishment of Debt Recovery
Tribunals for expeditious adjudication and recovery of debts due to any bank or Public Financial Institution or to a
consortium of banks and Public Financial Institutions. Under this Act, the procedures for recoveries of debt have been
simplified and time frames been fixed for speedy disposal of cases. Upon establishment of the Debt Recovery Tribunal,
no court or other authority can exercise jurisdiction in relation to matters covered by this Act, except the higher courts in
India in certain circumstances.
The Sick Industrial Companies Act, 1985, provides for reference of sick industrial companies, to the Board for Industrial
and Financial Reconstruction. Under it, other than the board of directors of a company, a scheduled bank (where it has
an interest in the sick industrial company by any financial assistance or obligation, rendered by it or undertaken by it)
may refer the company to the BIFR. The Sick Industrial Companies Act, 1985 has been repealed by the Sick Industrial
Companies (Special Provisions) Repeal Act, 2004 (“SICA Repeal Act”). However, the SICA Repeal Act, which is due to
come into force on a date to be notified by the central government in the official gazette, has not yet been notified. On the
repeal becoming effective, the provisions of the Companies Act will apply in relation to sick companies, under which the
reference must be made to the National Company Law Tribunal, and not the Board for Industrial and Financial

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BANK OF BARODA
Reconstruction.
The Securitisation Act focuses on improving the rights of banks and financial institutions and other specified secured
creditors as well as asset reconstruction companies by providing that such secured creditors can take over management
control of a borrower company upon default and/or sell assets without the intervention of courts, in accordance with the
provisions of the Securitisation Act.