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CS Professional · Strategic Management and Corporate Finance · Raising of Funds from Debt and Procedural Aspects

Kaveri Infra Ltd is making a public issue of NCDs and is listed. Which statement correctly reflects the Companies Act, 2013 on who administers the provisions on issue and transfer of securities for such a company?

For a listed company, or one intending to list, the issue and transfer of securities is administered by SEBI through regulations, except as the Act otherwise provides, under Section 24(1)(a). The Central Government administers other cases, so the Registrar-only and Tribunal options are incorrect.

  1. AThe Central Government administers them through the Registrar in every case
  2. BThe Tribunal administers them by framing regulations
  3. CSEBI administers them by making regulations, except as otherwise provided in the ActCorrect
  4. DThe stock exchange administers them under its own bye-laws

Explanation

Section 24(1)(a) states that, for listed companies or those intending to list, the provisions relating to issue and transfer of securities are administered by SEBI by making regulations, except as provided in the Act. The Central Government administers other cases under clause (b). Matters such as prospectus and return of allotment remain with the Central Government, Tribunal or Registrar as per the Explanation.

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