Power of Securities and Exchange Board to regulate issue and transfer of securities, etc
Section 24 of the Companies Act, 2013 deals with power of Securities and Exchange Board to regulate issue and transfer of securities, etc. The provisions contained in this Chapter, Chapter IV and in section 127 shall,-- (a) in so far as they relate to-- (i) issue and transfer of securities; The Act came into force on 01 Apr 2014.
(1) The provisions contained in this Chapter, Chapter IV and in section 127 shall,--
(a) in so far as they relate to--
(i) issue and transfer of securities; and
(ii) non-payment of dividend,
by listed companies or those companies which intend to get their securities listed on any recognised stock exchange in India, except as provided under this Act, be administered by the Securities and Exchange Board by making regulations in this behalf;
(b) in any other case, be administered by the Central Government.
Explanation.--For the removal of doubts, it is hereby declared that all powers relating to all other matters relating to prospectus, return of allotment, redemption of preference shares and any other matter specifically provided in this Act, shall be exercised by the Central Government, the Tribunal or the Registrar, as the case may be.
(2) The Securities and Exchange Board shall, in respect of matters specified in subsection (1) and the matters delegated to it 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 (15 of 1992).
Section 24, The Companies Act, 2013 (Act 18 of 2013).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
- s. 11 [Omitted]
- s. 127 Punishment for failure to distribute dividends
- s. 458 Delegation by Central Government of its powers and functions
- Securities and Exchange Board of India Act s. 11A Board to regulate or prohibit issue of prospectus, offer document or advertisement soliciting money for issue of securities
- Securities and Exchange Board of India Act s. 11B Power to issue directions and levy penalty
- Securities and Exchange Board of India Act s. 11D Cease and desist proceedings
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… However, we could not locate any provision under the Act 1992 empowering the Board to interfere with the rejection of a nomination or an election conducted to the Directorship of a banking company. 49. We have pointed out earlier that the sole power of SEBI is contained under Section 24 of the Companies Act to regulate the issue and transfer of securities, which has nothing to do with the nomination made for Directorship in the appellant towards the process of election in the annual general meeting. 50. Therefore, in our considered opinion, the prayer sought for in W. P. (C) No. 20425 of 2021 …
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… However, we could not locate any provision under the Act 1992 empowering the Board to interfere with the rejection of a nomination or an election conducted to the Directorship of a banking company. 49. We have pointed out earlier that the sole power of SEBI is contained under Section 24 of the Companies Act to regulate the issue and transfer of securities, which has nothing to do with the nomination made for Directorship in the appellant towards the process of election in the annual general meeting. 50. Therefore, in our considered opinion, the prayer sought for in W. P. (C) No. 20425 of 2021 …
Made under this section, and citing it
2 instruments state that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.
Another 5 instruments name this provision in its title or its text without being made under it.
- Chapter I - The Companies (Specification of definitions details) Rules, 2014.Rule 2014
- Chapter XXIV - The Companies (Registration Offices and Fees) Rules, 2014.Rule 2014
- Commencement Notification Of Companies Act 2013Notification 2013
- Companies (Removal of Difficulties) Order,2013Notification 2013
- Companies (Removal of Difficulties) Order,2013 dated 20.09.2013Order 2013
Questions about Section 24
What does Section 24 of the Companies Act deal with?
Section 24 of the Companies Act is headed "Power of Securities and Exchange Board to regulate issue and transfer of securities, etc". The provisions contained in this Chapter, Chapter IV and in section 127 shall,-- (a) in so far as they relate to-- (i) issue and transfer of securities;
How do I find court cases under Section 24 of the Companies Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Companies Act 24, section 24 Companies Act, section 24 of the Companies Act. People searching for it also type companies act 24 31. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 24 of the Companies Act, and has it changed?
Its own text turns on section 11 ([Omitted]), section 127 (Punishment for failure to distribute dividends), section 458 (Delegation by Central Government of its powers and functions), Securities and Exchange Board of India Act 11A (Board to regulate or prohibit issue of prospectus, offer document or advertisement soliciting money for issue of securities), and on 2 further provisions, so none of them can safely be read on its own. The rules and notifications made under it are where it actually bites, and there are 2: most recently commencement notification dt 21.12.2020 (2020), then Commencement notification (2018).
When did Section 24 of the Companies Act come into force?
Section 24 of the Companies Act, cited as Companies Act 24, came into force on 01 Apr 2014, having been enacted on 29 Aug 2013. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions5089 words
- 143. Powers and duties of auditors and auditing standards1867 words
- 230. Power to compromise or make arrangements with creditors and members1432 words
- 232. Merger and amalgamation of companies1416 words
- 149. Company to have Board of Directors1403 words
- 217. Procedure, powers, etc., of inspectors1390 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.