Section 24 of the Companies Act, 2013
Section 24 of the Companies Act, 2013 deals with the Power of Securities and Exchange Board of India (SEBI) in matters relating to issuance and transfer of securities and listing of securities of companies.
📘 Section 24 – Power of SEBI to regulate issue and transfer of securities, etc.
(1) The SEBI shall exercise powers and functions under the SEBI Act, 1992 in relation to:
Matters pertaining to issue and transfer of securities, and
Non-payment of dividend
by companies which are:
Listed on a recognized stock exchange, or
Proposed to be listed.
🔹 In such cases, SEBI has overriding authority, not the Registrar of Companies (RoC).
(2) In cases other than listed or proposed to be listed companies, such powers (issue/transfer of securities and dividend matters) shall be handled by the Central Government or other authorities under this Act (like RoC, NCLT, etc.).
(3) SEBI can also take action against:
Insider trading,
Fraudulent and unfair trade practices related to securities.
📝 Summary:
| Company Type | Regulatory Authority |
|---|---|
| Listed or to be listed | SEBI |
| Unlisted (not proposed to list) | Central Government/RoC |
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