Section Text
(1) No company incorporated in the States shall except with the consent of the Central Government, make an issue of capital outside the States;
(2) No company, whether incorporated in the States or not, shall, except with the consent of the Central Government -
(a) make an issue of capital in the States;
(b) make in the States any public offer of securities for sale;
(c) renew or postpone the date of maturity or repayment of any security maturing for payment in the States.
(3) The Central Government may on application make an order according recognition to an issue of capital made or to be made outside the States by a company not incorporated in the States.
(4) The Central Government may qualify any consent or recognition accorded by it under sub-section (2) or sub-section (3) with such conditions, whether for immediate or future fulfillment, as it may think fit to impose and where a company acts in pursuance of such consent or recognition, it shall comply with the terms of any condition so imposed.
(5) Where an application for the consent or recognition of the Central! Government under any of the provisions of this section is refused, the Central Government shall, upon the request of the applicant, communicate to him in writing the reasons for such refusal.
1[(6) The Central Government may by order at any time-
(a) Revoke the consent or recognition accorded under any of the provisions of this section: or
(b) Where such consent or recognition has been qualified with any conditions, vary all or any of those conditions: Provided that before an order under this sub-section is made the company concerned shall be given a reasonable opportunity of showing cause why such order should not be made
(7) Where an order has been made under sub-section (6), the Central Government shall, upon the request of the company concerned, communicate to it in writing the reasons for such order.]
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1. Inserted by the Capital Issues (Control) Amendment Act (Act 50 of 1957) w.e.f 21.12.1957.