According to section 4A of the companies Act, 1956 the following institutions will be regarded as Public Financial Institutions :-

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  1. The Industrial Development Bank Of India.
  2. The Industrial Credit And Investment Corporation Of India
  3. The Life Insurance Corporation Of India.
  4. The Unit Trust Of India
  5. The Industrial Finance Corporation Of India.
  6. The Infrastructure Development Finance Company Ltd.
  7. The Reconstruction Company Or The Securitization Company that has been recognised under the securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

According to section 4A(2) the Central Government has the power to add or increase to the institution list, the addition can be done only when the notification or it is given in the official gazette. The  institution will be added to existing list on when they fulfill the following two conditions:

(a)     It must have been established or constituted by or under any Central Act, or

(b)     Not less than 51% of the paid up share capital of such an institution is held or controlled by the Central Government. Till now Central Government has specified 39 institutions to be public financial institutions. Some of them are :-

  1. The Oriental Fire And General Insurance Company Limited
  2. The National Insurance Company Ltd
  3. Export Import Bank Of India.
  4. The Shipping And Credit And Investment Company Of India Ltd.
  5. National Housing Bank
  6. Small Industrial Development Bank Of India.
  7. NABARD etc.

 

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