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CS Executive · Capital Market and Securities Laws · Acquisition of Shares and Takeovers - Concepts

Meera acquires shares of a listed company. Under the regulations she was required to make a public announcement to acquire shares at a minimum price, but she fails to do so. Which provision of the SEBI Act, 1992 specifically provides the penalty for this failure?

Section 15H of the SEBI Act provides the penalty. It applies where a person required to do so fails to make a public announcement to acquire shares at a minimum price. Sections 12 and 12A(d) deal with registration and insider trading, not this default.

  1. ASection 12, which deals with registration of intermediaries
  2. BSection 15H, which deals with penalty for non-disclosure of acquisition of shares and takeoversCorrect
  3. CSection 12A(d), which deals with insider trading
  4. DSection 12(1B), which deals with collective investment schemes

Explanation

Section 15H penalises a person who fails to make a public announcement to acquire shares at a minimum price when required under the Act, rules or regulations. Section 12 concerns registration of intermediaries and 12A(d) concerns insider trading, so neither addresses this default. Section 12(1B) concerns sponsoring venture capital funds or collective investment schemes.

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