Section 29
Section 29
Any overdraft or other credit facility granted by any licensed bank to any person for the purpose of financing the purchase or the holding of shares shall not exceed such percentage of the market value of the shares at the time the overdraft or other credit facility is granted, as may be directed by the Central Bank in writing.
(2)
An overdraft or other credit facility granted under this section to any person shall be accounted for in an account separate from that kept for any other credit facility granted to him.
(3)
The Central Bank may give direction in writing to any licensed bank in respect of the following matters, that is to say—
(a)
the basis and method for determining the market value of shares held as security for such overdraft or credit facility;
(b)
the withdrawal of funds or shares by the person to whom such overdraft or credit facility was granted;
(c)
the substitution of other shares for shares held as security for such overdraft or other credit facility; and
(d)
such other matters as may be deemed necessary.
(4)
Any licensed bank which acts in contravention of the provisions of this section or any direction given under this section shall be guilty of an offence under this Act.