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CS Executive · Capital Market and Securities Laws · Issue and Listing of Non-Convertible Securities

Ganga Infra Ltd is making a public offer of its debt securities. Which requirement regarding the form in which these securities are issued applies under the Companies Act, 2013?

A company making a public offer must issue its securities only in dematerialised form, in compliance with the Depositories Act, 1996 and its regulations, as section 29 requires. The rule covers securities generally, not just equity, and gives no investor option for physical certificates.

  1. ASecurities must be issued only in dematerialised formCorrect
  2. BSecurities may be issued in physical form at the investor's choice
  3. CDematerialisation is required only after listing
  4. DDematerialisation applies only to equity shares

Explanation

Section 29(1) requires every company making a public offer to issue securities only in dematerialised form under the Depositories Act, 1996. The provision is not limited to equity or to post-listing stages, and no investor choice of physical form exists for such an offer.

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