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CS Executive · Capital Market and Securities Laws · Issue of Capital and Disclosure Requirements

A listed company, Kaveri Foods Ltd., wants clarity on SEBI's authority under Section 11A(2) of the SEBI Act, 1992. Which statement is correct?

Section 11A(2) lets SEBI specify requirements for listing and transfer of securities and incidental matters, without prejudice to section 21 of the Securities Contracts (Regulation) Act, 1956. It supplements rather than overrides that Act, and is not limited to debt securities or given to the Registrar.

  1. ASEBI may specify requirements for listing and transfer of securities and incidental matters, without prejudice to section 21 of the Securities Contracts (Regulation) Act, 1956Correct
  2. BSEBI may specify listing requirements only by overriding section 21 of the Securities Contracts (Regulation) Act, 1956
  3. CSEBI can specify listing requirements only for debt securities
  4. DSEBI's listing power lies only with the Registrar under Section 11A(2)

Explanation

Section 11A(2) says that without prejudice to section 21 of the Securities Contracts (Regulation) Act, 1956, the Board may specify the requirements for listing and transfer of securities and other incidental matters. It does not override that section nor restrict to debt securities.

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