law: State Financial Corporations Act, 1951
  4. Share capital and shareholders 
  (1) The authorized capital of the Financial Corporation shall be
  
  such sum as may be fixed by the State Government in this behalf, 2[but it shall
  
  be less than fifty lakh of rupees or exceed fifty crores of rupees:
  PROVIDED that the Central Government may, on the
  
  recommendation of the Development Bank, by notification in the Official
  
  Gazette, increase the authorized capital up to one hundred crores of rupees.]
  2[(2) The authorized capital shall be divided into such manner
  
  of fully paid up shares of the same face value and shall be issued to the
  
  parties mentioned in sub-section (3) at such times and in such manner as the
  
  State Government may, by notification in the Official Gazette, determine:
  PROVIDED that no such notification shall be necessary
  
  when the shares are to be issued to the parties mentioned in clauses (a) and
  
  (ba) of sub-section (3).
  (3) The State Government shall, with the approval of the Central
  
  Government, determine the number of share which may, respectively, be
  
  distributed among-
  (a) the State Government,
  (b) the Reserve Bank,
  (ba) the Development Bank,
  (c) scheduled banks, insurance companies
  
  (including the Life Insurance Corporation of India established under section 3
  
  of the Life Insurance Corporation Act, 1956 (31 of 1956)], investment trusts,
  
  co-operative banks, 2[other financial institutions or such other institutions
  
  as the Central Government may notify in this behalf in the Official Gazette],
  
  and
  (d) parties other than those referred to in
  
  clauses (a), (b), (ba) and (c):
  PROVIDED that the number of shares which may be
  
  allocated to the parties referred to in clause (d) shall in no case exceed
  
  twenty-five per cent of the total number of shares.
  (4) Subject to the other provisions contained in this section,
  
  the allocation of shares among the parties referred to in clauses (c) and (d)
  
  of sub-section (3) and the allotment of such shares shall be made by the
  
  Financial Corporation in such manner as may be prescribed.
  2[(5) If any shares allocated to any of the parties referred to
  
  in clause (c) and (d) of sub-section (3) remain unsubscribed, they shall be
  
  subscribed for equally by the State Government and the Development Bank.]