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

Sunrise Infra Ltd, a public company, plans to list its debt 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 that intends to get its securities listed?

SEBI administers them. Section 24 of the Companies Act, 2013 says provisions on issue and transfer of securities, for listed companies or those intending to list, are administered by the Securities and Exchange Board through regulations, while the Central Government handles all other cases.

  1. AThe Central Government, through the Registrar of Companies
  2. BThe Securities and Exchange Board, by making regulationsCorrect
  3. CThe National Company Law Tribunal, by passing orders
  4. DThe stock exchange, through its listing committee

Explanation

Section 24(1)(a) provides that, for listed companies or those that intend to get securities listed, the provisions on issue and transfer of securities are administered by SEBI by making regulations. The Central Government administers only 'any other case', so option A describes the wrong category of company.

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