(i) The extract of the major shareholders holding paid- up share capital in Rural Development Fin. Corp. Ltd., are as follows: Central Government26%…

(a) (i) Conditions for an institution to be notified as PFI (Section 2 (72) of the Companies Act,2013: No institution shall be so notified unless— (A) it has been established or constituted by or under any Central or State Act other than this Act or the previous Companies Law; or (B) not less than fifty-one per cent of the paid-up share capital is held or controlled by the Central Government or by any State Government or Governments or partly by the Central Government and partly by one or more State Governments. In the instant case, the major shareholders holding paid-up share capital in Rural Development Fin. Corp. Ltd. by the Central Government and State Governments is68% (i.e. Central Government:26%, State of Maharashtra:18% and State of Tamilnadu:24%), hence it will be regarded as ‘Public Financial Institution’ under the Companies Act,2013. By virtue of Section 2 (72) of the Companies Act,2013, the following institutions are to be regarded as public financial institutions: (i) the Life Insurance Corporation of India, established under the Life Insurance Corporation Act,1956; (ii) the Infrastructure Development Finance Company Limited, (iii) specified company referred to in the Unit Trust of India (Transfer of Undertaking and Repeal) Act,2002; (iv) institutions notified by the Central Government under section 4A (2) of the Companies Act,1956 so repealed under section 465 of this Act; (v) such other institution as may be notified by the Central Government in consultation with the Reserve Bank of India. (ii) No, it is not mandatory to have common seal for the company. In case a company does not have a common seal, the authorization shall be made by two directors or by a director and the Company Secretary, wherever the company has appointed a Company Secretary.