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

Kaveri Finance Ltd intends to get its non-convertible debentures listed on a recognised stock exchange in India. Who administers the Companies Act provisions on issue and transfer of securities for such a company?

SEBI administers these provisions through regulations. Under section 24 of the Companies Act, 2013, issue and transfer of securities by listed companies, or those intending to list on a recognised stock exchange, fall under SEBI, while other cases are administered by the Central Government.

  1. AThe Central Government in every case
  2. BThe Registrar of Companies alone
  3. CThe Securities and Exchange Board, by making regulationsCorrect
  4. DThe National Company Law Tribunal

Explanation

Section 24(1)(a) says that for listed companies, or companies intending to get securities listed, the provisions on issue and transfer of securities are administered by SEBI through regulations. The Central Government administers other cases. So the Central Government option is wrong for a company intending to list.

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