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Securities law and compliances-plz help

CS 1179 views 3 replies

    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:)


CCI Pro

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