Section 13: Restriction on commission, brokerage, discount, etc. on sale of shares

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Section 13 — Restriction on commission, brokerage, discount, etc. on sale of shares. Caps aggregate commission, brokerage, discount or remuneration connected with a banking. Company’s share issue at 2.5% of the issue price; issue price includes premium for this computation.

Official statute linkedProvision-specific anatomyPractical case + evidence file

Official text: DFS consolidated Act

Statutory structure and provision map

This map is a provision-specific explanation, not a substitute for the exact statutory text.

Core statutory rule

Caps aggregate commission, brokerage, discount or remuneration connected with a banking company’s share issue at 2.5% of the issue price.

Condition / limitation

issue price includes premium for this computation.

Source and effective-date control

Apply the wording of Section 13 that was in force on the event date; use the official Act and any applicable commencement/amending instrument linked on this page.

Professional application

verified 2.5% anchor; explain its price base, included costs and a complete worked calculation.

Working flow

Identify the bank/entity class, event date and the factual trigger for Restriction on commission, brokerage, discount, etc. on sale of shares.

Apply the core Section 13 rule: Caps aggregate commission, brokerage, discount or remuneration connected with a banking company’s share issue at 2.5% of the issue price.

Test the next condition or limitation: issue price includes premium for this computation.

Reconcile any amount, period, approval, filing or return mentioned in Section 13 with the supporting record.

Record the conclusion, official source used, effective date and evidence that proves the statutory condition was met or not met.

Evidence / working-paper checklist

Section 13 evidence: current cap table and voting-rights register.
Section 13 evidence: issue/acquisition/charge transaction documents.
Section 13 evidence: RBI approval and conditions where required.
Section 13 evidence: calculation file for capital, ownership, commission, reserve or voting limits.

Retain the event date and source version with the file so the conclusion remains reproducible after later amendments.

Common mistakes to avoid

For Section 13, avoid testing a threshold on one holder while ignoring connected/acting-in-concert holdings.
For Section 13, avoid using face value where the statute uses issue price or another base.
For Section 13, avoid treating corporate-law approval as a substitute for RBI approval.

Linked Rules, RBI directions, notifications and forms

RBI (Commercial Banks — Resource Raising Norms) Directions, 2025
Relevance: check this instrument’s own scope where Section 13 concerns restriction on commission, brokerage, discount, etc. on sale of shares.

Linked instruments keep their own legal basis; they are not attributed to Section 13 unless the official instrument says so.

Related sections inside the Act

Use these links to read Section 13 in its statutory sequence, especially where the provision imports definitions, approvals, appeals, penalties or winding-up consequences from neighbouring sections.

Current-law source control

Source control: Section 13 is anchored to the official DFS consolidated text; later changes require separate Gazette verification.

Dated matters: verify any later Gazette, RBI direction or binding judgment affecting Section 13 on the event date.

Primary official sources

Disclaimer

This Finin2min page is an educational and professional reference. Banking regulation is fact-, entity- and date-sensitive. Verify the current Act, Gazette amendments and commencement notifications, applicable RBI Rules/directions and the transaction record before acting or filing.