Skip to content

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

Tarini Finance Ltd has listed its non-convertible debentures on a recognised stock exchange. Which statement best describes the legal basis on which SEBI prescribes how a listed issuer must disclose matters relating to its securities?

SEBI draws its power to prescribe disclosures from section 11A of the SEBI Act, 1992. It may specify by regulations the matters relating to issue of capital and transfer of securities and the manner in which companies disclose them. It may also specify listing requirements.

  1. ASEBI may specify by regulations the matters relating to issue of capital and transfer of securities and the manner in which companies must disclose them, under section 11A of the SEBI Act, 1992Correct
  2. BSEBI can prescribe disclosure only through orders of the Central Government, since it has no regulation-making power over issue matters
  3. CDisclosure for listed companies is governed only by the Registrar of Companies, and SEBI has no role
  4. DDisclosure norms apply only at the time of the offer and SEBI cannot specify anything about listing requirements

Explanation

Section 11A(1)(a) of the SEBI Act empowers SEBI to specify by regulations the matters relating to issue of capital, transfer of securities and incidental matters, and the manner of their disclosure by companies. Section 11A(2) separately lets SEBI specify listing requirements. The other options deny SEBI's regulation-making power, which is wrong.

Did you get it right without looking?

One question tells you little. A timed set on Issue and Listing of Non-Convertible Securities shows your real accuracy, how long you take and where you lose marks.

Practise Issue and Listing of Non-Convertible SecuritiesFree diagnostic mock

More Issue and Listing of Non-Convertible Securities questions