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CS Executive · Capital Market and Securities Laws · Securities Market Intermediaries

Which statement about intermediaries named in Section 12(1) of the SEBI Act is correct?

Both share transfer agents and registrars to an issue are listed in Section 12(1) and need a SEBI certificate of registration. Depositories, participants and custodians are dealt with in Section 12(1A), and no exemption exists for registrars.

  1. ARegistrars to an issue and share transfer agents are covered by Section 12(1A), not Section 12(1)
  2. BOnly stock-brokers need registration, while registrars to an issue are exempt
  3. CShare transfer agents and registrars to an issue are both listed in Section 12(1) as needing a SEBI certificate of registrationCorrect
  4. DDepositories and participants are listed in Section 12(1) along with registrars to an issue

Explanation

Section 12(1) names stock-brokers, sub-brokers, share transfer agents, bankers to an issue, trustees of trust deed, registrars to an issue, merchant bankers, underwriters, portfolio managers and investment advisers. Depositories and participants appear in Section 12(1A), so the other options misplace them or wrongly grant exemptions.

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