Question

Directors take approval from where before issue of shares in capital market?

Answer 1

Directors take approval from the Security Exchange Board of India(SEBI) before issuing shares in the capital market.

1. SEBI (Security Exchange Board of India) is usually known as a regulatory body because it helps in regulating the capital structure of the market in India to shield the interest of the investors.

2. Any company or any enterprise that wishes to escort a public form of issue of shares should take advance approval of the Security Exchange Board of India(SEBI).

3. SEBI has a broad-ranging regulation system, and investigative, and administrative powers, counting the ability to inhibit fines on the violators.

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