Section 24: Power of Securities and Exchange Board to regulate issue and transfer of securities, etc
This section is for giving the Securities and Exchange Board the power to regulate the issue and transfer of securities for listed companies in India.
The section, clause by clause
What the section says
In plain terms
(1)The provisions contained in this Chapter, Chapter IV and in section 127 shall,—
The Securities and Exchange Board will oversee the issue and transfer of securities, and non-payment of dividend, for companies listed on a recognised stock exchange in India, by making regulations, while the Central Government will handle other cases.
(1)(a)in so far as they relate to —
(1)(a)(i)issue and transfer of securities; and (ii) non-payment of dividend, by listed companies or those companies which intend to get their securities listed on any recognised stock exchange in India, except as provided under this Act, be administered by the Securities and Exchange Board by making regulations in this behalf;
(1)(b)in any other case, be administered by the Central Government.
explanationExplanation.—For the removal of doubts, it is hereby declared that all powers relating to all other matters relating to prospectus, return of allotment, redemption of preference shares and any other matter specifically provided in this Act, shall be exercised by the Central Government, the Tribunal or the Registrar, as the case may be.
(2)The Securities and Exchange Board shall, in respect of matters specified in sub-section (1) and the matters delegated to it under proviso to sub-section (1) of section 458, exercise the powers conferred upon it under sub-sections (1), (2A), (3) and (4) of section 11, sections 11A, 11B and 11D of the Securities and Exchange Board of India Act, 1992 (15 of 1992).
The Securities and Exchange Board will use its powers under the Securities and Exchange Board of India Act, 1992, to regulate matters related to securities, as specified in this section and section 458.
The right-hand column is written from the section text, not quoted from it, and it has no legal force. Where the two differ, the left-hand column is the law.
Amendment notes
- 1. Subs. by Act 1 of 2018, s. 7, for “an officer of the company” (w.e.f. 9-2-2018).
- 2. Subs. by Act 21 of 2015, s. 6, for “under its common seal” (w.e.f. 29-5-2015).
- 3. The proviso ins. by s. 6, ibid. (w.e.f. 29-5-2015).
- 4. The words “and have the effect as if it were made under its common seal” omitted by s. 6, ibid. (w.e.f. 29-5-2015).
- 5. Ins. by Act 29 of 2020, s. 5, (w.e.f. 30-10-2023).
- 1. Ins. by Act 1 of 2018, s. 8 (w.e.f. 7-5-2018).
This section refers to
Referred to by
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Reproduced from the official India Code print for reference. Check the current text on India Code before you rely on it, and read the section alongside its Rules. Nothing here is legal advice.