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

SEBI frames regulations on the matters relating to issue of capital and the manner in which companies must disclose them. Under Section 11A(1)(a), these regulations are made for which purpose, and in what manner?

Under Section 11A(1)(a), SEBI specifies by regulations, for investor protection, the matters relating to issue of capital, transfer of securities and incidental matters, and the manner in which companies must disclose them. It is not a revenue-raising or Tribunal-based power.

  1. AFor the protection of investors, by specifying matters relating to issue of capital, transfer of securities and incidental matters, and the manner of disclosureCorrect
  2. BFor raising revenue for the Central Government, by notifying fees
  3. CFor regulating only unlisted private companies, through Registrar circulars
  4. DFor deciding the par value of every share, through the Tribunal

Explanation

Section 11A(1) states that, without prejudice to the Companies Act, the Board may for protection of investors specify by regulations the matters relating to issue of capital, transfer of securities and incidental matters, and how companies disclose them. It is not limited to unlisted private companies and does not involve the Tribunal.

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