CS Executive · Capital Market and Securities Laws · Acquisition of Shares and Takeovers - Concepts
Section 12A prohibits the listed activities if done by a person in which manner?
The prohibition applies whether the person acts directly or indirectly. Section 12A opens with 'No person shall directly or indirectly', so using nominees or other routes does not avoid it, and it is not limited to promoters or to dealings through brokers.
- AOnly directly
- BOnly through a registered broker
- CDirectly or indirectlyCorrect
- DOnly if the person is a promoter
Explanation
Section 12A begins by stating that no person shall directly or indirectly do the specified acts. Hence acting through nominees or other routes is also caught. It applies to any person, not only promoters or only direct dealings.
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