This Act may be called the Reserve Bank of India (Second Amendment) Act, 1940.

In Section 4 of the Reserve Bank of India Act, 1934, as adapted and modified in accordance with the Third Schedule to the India and Burma (Burma Monetary Arrangements) Order, 1937 (hereinafter referred to as the said Act, after sub-section (4) the following sub-section shall be inserted, namely:

(4-A) Without prejudice to the validity of any registration made before the commencement of the Reserve Bank of India (Second Amendment) Act, 1940, no person shall, after the commencement of that Act, be registered as a share-holder in respect of any shares held by him whether in his own name or jointly with another person or persons in excess of a total nominal value of twenty thousand rupees or be entitled to payment of any dividend on such shares or to exercise may of the rights of a share-holder in respect of such shares otherwise than for the purpose of selling the shares.

In sub-section (2) of Section 56 of the said Act, after the words registered in his name the following words shall be inserted, namely:

or that any share-holder, to whom the provisions of sub-section (4-A) of Section 4 apply, is the holder of shares in excess of a total nominal value of twenty thousand rupees .