Skip to content

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

Under the Companies Act, 2013, who administers the provisions on issue and transfer of securities and non-payment of dividend in relation to a listed company like Veda Infra Ltd, which has listed debt securities?

For a listed company, the provisions on issue and transfer of securities and non-payment of dividend are administered by SEBI through regulations, except as otherwise provided in the Companies Act. The Central Government administers them only in other cases, such as unlisted companies.

  1. AThe Central Government in all cases
  2. BThe Registrar of Companies exclusively
  3. CThe Securities and Exchange Board of India, by making regulations, except as otherwise provided in the ActCorrect
  4. DThe National Company Law Tribunal exclusively

Explanation

Section 24(1)(a) provides that these provisions, as they relate to issue and transfer of securities and non-payment of dividend by listed companies or those intending to list, are administered by SEBI by making regulations, except as provided in the Act. In any other case the Central Government administers them. Option A reflects the rule for unlisted companies, not listed ones.

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