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CS Executive · Capital Market and Securities Laws · Listing Obligations and Disclosure Requirements

Bharat Auto Ltd, a listed company, is asked by its promoter group to enter into a related party transaction. The company's counsel says SEBI can frame governance and disclosure requirements for listed entities by regulation. Which provision of the SEBI Act, 1992 empowers SEBI to specify requirements for listing and transfer of securities and incidental matters?

Section 11A(2) of the SEBI Act, 1992 allows SEBI, without prejudice to Section 21 of the SCRA, to specify requirements for listing and transfer of securities and incidental matters. This is the source from which SEBI frames listing-related governance requirements.

  1. ASection 11A(2)Correct
  2. BSection 30A(1)
  3. CSection 30B(3)
  4. DSection 17A(3)

Explanation

Section 11A(2) of the SEBI Act provides that, without prejudice to Section 21 of the SCRA, the Board may specify the requirements for listing and transfer of securities and other matters incidental thereto. Sections 30A, 30B and 17A belong to the SCRA and deal with commodity derivatives, pooled investment vehicles and certain securitised instruments.

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