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

Under Section 11A of the SEBI Act, 1992, which statement correctly describes SEBI's power relevant to disclosure by companies issuing securities?

SEBI may specify by regulations the matters relating to issue of capital, transfer of securities and incidental matters, and the manner in which companies disclose them. This is a regulation-making power under Section 11A(1)(a), and it is not limited by filing with the Registrar.

  1. ASEBI may specify by regulations the matters relating to issue of capital and transfer of securities and the manner in which they are disclosed by companiesCorrect
  2. BSEBI may only advise companies and cannot specify disclosure manner
  3. CSEBI's power ends once a prospectus is filed with the Registrar
  4. DSEBI may prohibit issue of offer documents only with prior approval of the Registrar

Explanation

Section 11A(1)(a) lets SEBI specify by regulations the matters on issue of capital, transfer of securities and incidental matters, and the manner of disclosure by companies. Clause (b) separately allows general or special orders prohibiting or conditioning offer documents, without any need for Registrar approval.

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