Securities law and compliances-plz help

    State, with reasons in brief, whether  the following statements are true or False:

                  1.           Consent order can take place only after filing criminal complaint by SEBI.

                 2.            As per clause 20 of the listing agreement a listed company can issue superior rights as to voting or dividend.

               3.            The draft offer document filed with Stock Exchange shall be made public for a period of 10days from the date of filing the offer document with ROC.

               4.            The IDR issued by any issuing company in any financial years should not exceed 25& of it’s paid up capital and free reserves.

           5.            Fixed coupon issue of govt securities having determined yields/prices by RBI.  

Replies (3)

(1) False

Consent Order can be passed at any stage where probable cause of violation has been found. In the event of a serious and intentional violation, the process cannot be completed till the fact finding process is completed whether by way of investigation or otherwise.

 

(2) False

SEBI has issued a circular dated July 21, 2009, to make amendments to prohibit issue of shares with superior voting rights by listed companies. This is pursuant to SEBI announcement discussed by Mr. Umakanth earlier in this blog here and that post makes an interesting analysis of the term "superior voting rights", particularly in comparison with the existing term "differential voting rights".

Incidentally, the actual amendment covers all superior rights as to voting as well as dividends. The original decision as per the Press Release read that "No listed company can issue shares with superior voting rights.".

 

(3) False

 The draft offer document filed with Stock Exchange shall be made public for a period of minimum 21 days from the date of filing the offer document with ROC.

 

(4) False

IDR issue size in any financial year could not exceed 15% of paid up capital and free reserves.

 

(5) True (Not very sure).

 

Please correct me wherever I am wrong.

Thanks & Regards,

Abhi

















Thanks very much dear

My pleasure. :)

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 07 September 2026
CA Articles

Kothari Jain Patil & Chartered Accountants

Pune

CA Inter

View Details
Company
ARTICLESHIP 07 September 2026
Article/ Paid Assistant

Murali and Sumeet Chartered Accountant

Bengaluru

CA Foundation

View Details
Company
28 August 2026
Audit Manager

K A R M & CO

Mumbai

CMA

View Details
Company
08 September 2026
Semi-Qualified Assitant

Subrahmanyam & Sivudu CA Firm

Hyderabad

CA Inter

View Details
Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details
Company
ARTICLESHIP 01 September 2026
Articles

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Foundation

View Details
Company
15 September 2026
Client-site CA associate

Aditya Muley and Co

Mumbai

CA

View Details
Company
ARTICLESHIP 16 September 2026
Article Assistant

MANUJ SHARMA AND COMPANY

Noida

CA Inter

View Details