UGC NET COMMERCE January 2017(Paper-II) Q44
0. SIDBI was set up as a subsidiary of IDBI to
- Option : A
- Explanation : SIDBI was set up on April 2, 1990 as a wholly owned subsidiary of IDBI, under an Act of the Parliament, viz., Small Industries Development Bank of India Act, 1989. The objectives of SIDBI are to serve as the principal financial institution for promotion, financing and development of industry in the small scale sector and to coordinate the functions of the institutions engaged in promoting, financing or developing industry in the small scale sector. The paid-up capital of SIDBI is ` 450 crore. Earlier this was entirely held by IDBI. In order to provide greater functional autonomy and operational flexibility to SIDBI from IDBI. SIDBI Act was amended in September 2000, which inter alia, envisages transfer of IDBI’s share holding in SIDBI to the extent of 51% to public sector banks, LIC, GIC and other institutions owned and/or controlled by GOI. SIDBI functions as the principal financial institution for financing, developing and promoting the small-scale industrial sector. A major part of SIDBI’s financial assistance, initially, was by way of refinance of term-loans and bills rediscounting. However, it has gradually diversified and expanded its lending operations by way of direct lending as well as support through the existing institutions and banks.
