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CS Executive · Capital Market and Securities Laws · Secondary Market in India

Under the Securities Contracts (Regulation) Act, 1956, SEBI wants to issue directions under Section 12A after an inquiry. Which of the following is a valid addressee of such directions?

A company whose securities are listed or proposed to be listed on a recognised stock exchange. Section 12A of the SCRA names such companies among the addressees, alongside exchanges, clearing corporations and persons associated with the securities market, and no prior conviction is required.

  1. AOnly the Central Government
  2. BAny company whose securities are listed or proposed to be listed on a recognised stock exchangeCorrect
  3. COnly persons who have already been convicted by a court
  4. DOnly the Registrar of Companies

Explanation

Section 12A(1) permits directions to stock exchanges, clearing corporations, agencies or persons providing trading, clearing or settlement facility, any person or class of persons associated with the securities market, and any company whose securities are listed or proposed to be listed. Conviction is not a precondition, and the Central Government and RoC are not named addressees.

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