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

Meghdoot Ltd is making a public offer of its non-convertible debentures. Under section 29 of the Companies Act, 2013, in what form must it issue the securities?

Dematerialised form only. Section 29(1) of the Companies Act, 2013 requires every company making a public offer to issue securities only in dematerialised form under the Depositories Act, 1996; the choice of physical form applies only to other companies.

  1. APhysical form only
  2. BEither physical or dematerialised form at the investor's choice
  3. CDematerialised form only, as per the Depositories Act, 1996Correct
  4. DDematerialised form only if the issue exceeds a prescribed amount

Explanation

Section 29(1) says every company making a public offer shall issue the securities only in dematerialised form, complying with the Depositories Act, 1996 and regulations. The choice of form in section 29(2) applies only to other companies, so option B is wrong.

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