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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 by a listed company that proposes to issue non-convertible debentures to the public?

SEBI administers the provisions on issue and transfer of securities for listed companies, or those intending to list, by making regulations under Section 24. The Central Government administers such provisions only in other cases, so a listed issuer of debentures falls under SEBI's regulatory powers.

  1. AThe Securities and Exchange Board of India, by making regulations, in so far as they relate to issue and transfer of securities by listed companiesCorrect
  2. BThe Central Government in every case, regardless of whether the company is listed
  3. CThe Registrar of Companies exclusively, for all matters including listing
  4. DThe National Company Law Tribunal, through its orders on each issue

Explanation

Section 24 provides that, for listed companies or those intending to list, the provisions on issue and transfer of securities are administered by SEBI through regulations; in any other case the Central Government administers them. Matters like prospectus and return of allotment remain with the Central Government, Tribunal or Registrar. Option B is wrong because it ignores the listed-company rule.

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