Section 24 Power of Securities and Exchange Board to regulate issue and transfer of securities, etc.

CHAPTER III
PROSPECTUS AND ALLOTMENT OF SECURITIES
[Sections 23 to 42]

Provisions of the Companies Act, 2013:
Section 24: Power of Securities and Exchange Board to regulate issue and transfer of securities, etc.
For this provision, no rules are prescribed the Companies Rules, 2013.
[Section 24 is brought to force with effect from September 12, 2013].

Corresponding provisions of the Companies Act, 1956:
Section 55A.

Corresponding provisions of the English Companies Act, 2006:
No such provision.

Applicability:
This section is sets jurisdiction of Securities and Exchange Board of India (SEBI) and the Central Government (i.e. Ministry of Corporate Affairs or MCA).

Legal provisions relating to issue of securities, transfer of securities and non-payment of dividend as contained in Sections 25 to 42, 43 to 72 and section 127 of the Companies Act 2013 shall be administered as under:
(a) in case of listed companies or those companies which intend to get their securities listed on any recognised stock exchange in India, be administered by SEBI by making regulations in this behalf (SEBI shall frame regulations so far as the Companies Act 2013 do not contain provisions in this regard); and
(b) in case of other companies, by MCA.

All powers relating to all other matters (other than issue of securities, transfer of securities and non-payment of dividend) relating to prospectus, return of allotment, redemption of preference shares and any other matter specifically provided in this Act, shall be exercised by MCA, the Tribunal or the Registrar, as the case may be ((Explanation to Section 24(1) )).

SEBI shall, in respect of issue of securities, transfer of securities, non-payment of dividend ((section 24(1) )) and forward dealing and insider trading ((delegated to SEBI 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 ((Section 24(2) )).

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