law: State Financial Corporations Act, 1951 
  28. Prohibited business 
  (1) The Financial Corporation shall not-
  (a) except as provided in section 8, accept
  
  deposits;
  (b) except as provided in clauses (da), (f)
  
  and (g) of sub-section (1) of section 25, subscribe to the shares or stock of
  
  any company;
  (c) grant any loan or advance on the security
  
  of its own shares;
  (d) grant any form of assistance to any
  
  industrial concern in respect of which the aggregate of the paid-up share
  
  capital and free reserves exceeds 18[three crores of rupees or such higher
  
  amount not exceeding thirty crores of rupees as the Central Government may by
  
  notification in the Official Gazette, specify].
  (2) The Financial Corporation shall not enter into any kind of
  
  business with any industrial concern, of which any of the Directors of the
  
  Financial Corporation is a proprietor, partner, Director, manager, agent,
  
  employee or guarantor, or in which one or more Directors of the financial
  
  Corporation together hold substantial interest:
  PROVIDED  that this section shall not apply to any
  
  industrial concern if any Director of the Financial Corporation-
  (i) in nominated as a Director of the Board of such concern by
  
  the Government or a Government company as defined in Section 617 of the
  
  Companies Act, 1956 (1 of 1956), or by a Corporation established by or under
  
  any other law; or
  (ii) is elected on the Board of such concern by virtue of shares
  
  held in the concern by the Government or a Government company as defined in
  
  section 617 of the Companies Act, 1956 (1 of 1956), or by a Corporation
  
  established by or under any other law, by reason only such nomination or
  
  election, as the case may be.
  Explanation:  "Substantial interest" in relation
  
  to an industrial concern means the beneficial interest held by one or more of
  
  the Directors of the Financial Corporation or by any relative as defined in
  
  clause (41) of section 2 of the Companies Act, 1956 (1 of 1956) of such Director
  
  whether singly or taken together, in the shares of the industrial concern, the
  
  aggregate amount paid-up on which either exceeds five lakhs of rupees or five
  
  per cent, of the paid-up share capital of the industrial concern, whichever is
  
  less.
  (3) The provisions of sub-section (2) –
  (i) shall not apply to any transaction
  
  relating to the business entered into prior to the commencement of the State
  
  Financial Corporations (Amendment) Act, 1972 (77 of 1972), and all such
  
  business and any transaction in relation thereto may be implemented or
  
  continued as if that Act had not come into force;
  (ii) shall apply only so long as the
  
  conditions precedent to such disability as set out in the sub-section continue.