Amended and updated notes on section 24 of Companies Act 2013. Detail discussion on provisions and rules related to power of Securities and Exchange Board to regulate issue and transfer of securities, etc.
Chapter III (Sections 23–42) of the Companies Act, 2013 (CA 2013) deals with the provisions related to prospectus and allotment of securities. Section 24 of CA 2013 provides for power of Securities and Exchange Board to regulate issue and transfer of securities, etc.
Recently, we have discussed in detail section 23 (Public offer and private placement) of CA 2013. Today, we learn the provisions of section 24 of Companies Act 2013.
Section 24 of the Companies Act, 2013 has been notified by the Ministry of Corporate Affairs (MCA) vide Notification No. S.O. 2754(E) issued dated 12.09.2013. This notification was come into force from 12th September, 2013 i.e. the commencement date of section 24 is 12-9-2013.
| Name of Act | The Companies Act 2013 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Ministry of Corporate Affairs (MCA) |
| Number of Chapters | 29 |
| Number of Sections | 484 (470-43+57) |
| Number of Schedules | 7 |
| You are reading: | |
| Chapter No. | III |
| Chapter Name | Prospectus and Allotment of Securities |
| Section No. | 24 |
| Section Name | Power of Securities and Exchange Board to regulate issue and transfer of securities, etc. |
| Monthly Updated Edition | Company Law PDF |
Section 24 of Companies Act 2013: Power of Securities and Exchange Board to regulate issue and transfer of securities, etc.
Section 24 shall come into force on 12th September, 2013 vide Notification No. S.O. 2754(E) dated 12.09.2013.
(1) The provisions contained in this Chapter, Chapter IV and in section 127 shall, —
- (a) in so far as they relate to —
- (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;
- (b) in any other case, be administered by the Central Government.
Explanation: 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 subsection (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.
The Central Government has notified section 434 for transfer of all matters, proceedings or cases to the Tribunal vide Notification No. S.O. 1934(E) issued dated 01.06.2016.