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CS Executive · Capital Market and Securities Laws · Issue of Capital and Disclosure Requirements

Meera Infra Ltd. intends to list its securities on a recognised stock exchange in India. Under Section 24 of the Companies Act, 2013, who administers the provisions on issue and transfer of securities for such a company, and which SEBI Act powers does SEBI exercise?

For a listed company or one intending to list, issue and transfer of securities is administered by SEBI through regulations. SEBI exercises its powers under section 11 (specified sub-sections) and sections 11A, 11B and 11D of the SEBI Act, not the Central Government, Registrar or Tribunal alone.

  1. AThe Central Government alone, using section 11 only
  2. BThe Registrar of Companies, using section 11B only
  3. CSEBI by making regulations, exercising powers under sections 11, 11A, 11B and 11D of the SEBI Act as specifiedCorrect
  4. DThe Tribunal, using section 11A only

Explanation

Section 24(1)(a) provides that, for listed companies or those intending to list, issue and transfer of securities is administered by SEBI by making regulations. Section 24(2) says SEBI exercises powers under sub-sections (1), (2A), (3) and (4) of section 11 and sections 11A, 11B and 11D of the SEBI Act.

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