POWER OF SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI) to manage ISSUE AND TRANSFER OF SECURITIES, ETC
SECTION 24 of Companies Act, 2013 deals with the provisions contained during this Chapter, Chapter IV and in section 127 shall,—
- In thus far as they relate to —
- Issue and transfer of securities; and
- Non-payment of dividend,
by listed companies or those companies which shall get their securities listed on any recognised stock market in India, except as provided under this Act, be administered by the Securities and Exchange Board by making regulations during this behalf;
(b) in the other case, be administered by the Central Government.
For The Removal Of Doubts, it's Hereby Declared that each one Powers concerning All Other Matters concerning Prospectus, Return Of Allotment, Redemption Of preferred stock And the other Matter Specifically Provided during this Act, Shall Be Exercised By The Central Government, The Tribunal Or The Registrar, because the Case could also be .
The Securities and Exchange Board shall, in respect of matters laid out in sub-section (1) and therefore the matters delegated thereto under proviso to sub-section (1) of section 458, exercise owers upon under sub sections (1) (2A) (3) and (4) of section 11 sections 11 A 11 B, 11 D of the Securitie and Exchange Board of India Act, 1992 (15 of 1992).
Where A Dividend Has Been Declared By a corporation But Has Not Been Paid Or The Warrant In Respect Thereof Has Not Been Posted Within 30 Days From The Date Of Declaration To Any Shareholder Entitled To The Payment Of The Dividend, Every Director Of the corporate Shall, If he's Knowingly a celebration To The Default, Be Punishable With
Imprisonment of 2 Years
Fine – 1000 Rupees for each Day During Which Such Default Continues And interest @18% P.A During the amount that Such Default Continues.
Provided that no offence under this section shall be deemed to possess been committed:—
(a) where the dividend couldn't be paid by reason of the operation of any law;
(b) where a shareholder has given directions to the corporate regarding the payment of the dividend and people directions can't be complied with and therefore the same has been communicated to him;
(c) where there's a dispute regarding the proper to receive the dividend;
(d) where the dividend has been lawfully adjusted by the corporate against any sum thanks to it from the shareholder; or
(e) where, for the other reason, the failure to pay the dividend or to post the warrant within the amount under this section wasn't thanks to any default the a part of the corporate .