Companies Act Case Study

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The Companies Act, 1956 sets out the code of conduct for companies with regard to issue, allotment and transfers of securities. It provides for disclosure to be made in the prospectus about the project, means of financing, particulars of company management and the perceptions of management with regard to risk factors. The legal aspects concerning dividends, rights and bonus issues are covered in the Companies Act.
• Company means a company formed and registered under this Act or an existing company as defined in clause (ii);
• Existing company means a company formed and registered under any of the previous companies laws specified below:
Any Act or Acts relating to companies in force before the Indian Companies Act, 1866 (10 of 1866) and repealed by the Act;
 The Indian …show more content…

It extends to the whole of India.
3. It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

SEBI GUIDELINES
The SEBI Act, 1992 established SEBI as market regulator with all statutory powers. SEBI was established with the objective of protecting the interest of investors and for regulation and development of securities market in India. It has the powers to regulate all the market intermediaries. The SEBI grants registration to the market intermediaries and has powers to inspect, monitor and take penal actions on them in case of violations of any provisions of the Act or rules, Issues of securities, stock exchanges and other market intermediaries are subject to regulatory power of SEBI.

Merchant banking in India is governed by SEBI (Merchant Bankers) Regulations 1992. It provides for registration of merchant bankers, general obligations and responsibilities of merchant bankers, procedures for inspection and procedures for action in case of defaults. Besides these, the code of conduct for merchant bankers is also specified. To become a merchant banker the following are the pre-requisites:
• The applicant must be corporate

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