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CS Executive · Capital Market and Securities Laws · Listing Obligations and Disclosure Requirements

Which statement correctly describes how eligibility criteria for offering or listing sub-clause (ie) securities are fixed under Section 17A(1) and Section 31 of the SCRA?

SEBI specifies the eligibility criteria and other requirements by regulations, and under Section 17A(1) no such securities may be offered to the public or listed on a recognised stock exchange unless the issuer fulfils and complies with them. Section 31 empowers SEBI to make these regulations.

  1. ASEBI specifies them by regulations, and no such securities may be offered to the public or listed unless the issuer meets themCorrect
  2. BThe recognised stock exchange fixes them through its listing agreement, and SEBI has no role
  3. CThe Central Government specifies them by an annual notification only for unlisted issuers
  4. DThey are fixed by the issuer's own articles and need no regulation

Explanation

Section 17A(1) bars the offer or listing unless the issuer meets eligibility criteria and other requirements specified by SEBI regulations. Section 31(2)(b) lists these criteria among matters on which SEBI regulations may provide. The exchange listing agreement alone is not the source.

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