Sections Particulars
Preliminary
1 Short title, extent and commencement
.- (1) This Act may be called the Securities Contracts (Regulation) Act, 1956.(2) It extents to the whole of India.(3) It shall come into force on such date...
2 Definitions
- In this Act, unless the context otherwise requires,-(a) 'Contract' means a contract for or relating to the purchase or sale of securities;(b) 'Government s...
Recognised Stock Exchanges
3 Application for recognition of stock exchanges
.- (1) Any stock exchange, which is desirous of being recognised for the purposes of this Act, may make an application in the prescribed manner to the Central...
4 Grant of recognition to stock exchanges
- (1) If the Central Government is satisfied, after making such inquiry as may be necessary in this behalf and after obtaining such to further information, if...
5 Withdrawal of recognition
.- If the Central Government is of opinion that the recognition granted to a stock exchange under the provisions of this Act should, in the interest of the tr...
6 Power of Central Government to call for periodical returns or direct inquires to be made
.- (1) Every recognised stock exchange shall furnish to the Central Government such periodical returns relating to its affairs as may be prescribed.(2) Every ...
7 Annual reports to be furnished to Central Government by stock exchanges
.- Every recognised stock exchange shall furnish the Central Government with a copy of the annual report, and such annual report shall contain such particula...
8 Power of Central Government to direct rules to be made or to make rules
.- (1) Where, after consultation with the governing bodies of stock exchanges generally or with the governing body of any stock exchange in particular, the Ce...
9 Power of recognised stock exchanges to make bye-laws
(1) Any recognised stock exchange may, subject to the previous approval of the Central Government, make bye-laws for the regulation and control of contracts.(...
10 Power of Central Government to make or amend bye-laws of recognised stock exchanges
.- (1) The Central Government may, either on a request in writing received by it in this behalf from the governing body of a recognised stock exchange or on i...
11 Power of Central Government to supersede governing body of a recognised stock exchange
(1) Without prejudice to any other powers vested in the Central Government under this Act, where the Central Government is of opinion that the governing body ...
12 Power to suspend business of recognised stock exchanges
If in the opinion of the Central Government an emergency has risen and for the purpose of meeting the emergency the Central Government considers it expedient ...
13 Contracts in notified areas illegal in certain circumstances
If the Central Government is satisfied, having regard to the nature or the volume of transactions in securities in any State or area, that is necessary so to...
14 Contracts in notified areas to be void in certain circumstances
(1) Any contract entered into any State or area specified in the notification under section 13 which is in contravention of any of the bye-laws specified in ...
15 Members may not act as principals in certain circumstances
No member of a recognised stock exchange shall in respect of any securities enter into any contract as a principal with any person other than a member of a r...
16 Power to prohibit contracts in certain cases
.- (1) If the Central Government is of opinion that it is necessary to prevent undesirable speculation in specified securities in any State or area, it may, ...
17 Licensing of dealers in securities in certain areas
- (1) Subject to the provisions of sub-section (3) and to the other provisions contained in this Act, no person shall carry on or purport to carry on, whethe...
18 Exclusion of spot delivery contracts from sections 13,14, 15 and 17
(1) Nothing contained in sections 13, 14,15 and 17 shall apply to spot delivery contracts.(2) Notwithstanding anything contained in sub-section (1), if the C...
19 Stock exchanges other than recognised stock exchanges prohibited
(1) No person shall, except with the permission of the Central Government, organise or assist in organising or be a member of any stock exchange (other than ...
20 Prohibition of options in securities
(1) Notwithstanding anything contained in this Act or in any other law for the time being in force, all options in securities entered into after the commencem...
21 Power to compel listing of securities by public companies
- Notwithstanding anything contained in any other law for the time being in force, if the Central Government is of opinion, having regard to the nature of th...
22 Right of appeal against refusal by stock exchanges to list securities of public companies
.- Where a recognised stock exchange acting in pursuance of any power given to it by its bye-laws, refuses to list the securities of any public company, the ...
23 Penalties
.- (1) Any person who—(a) without reasonable excuse (the burden of proving which shall be on him) fails to comply with any requisition made under sub-section ...
24 Offences by companies
.- (1) Where an offence has been committed by a company, every person who, at the time when the offence was committed, was in charge of, and was responsible t...
25 Certain offences to be cognizable
- Notwithstanding anything contained in the Code of Criminal Procedure, 1898 (5 of 1898), any offence punishable under sub-section (1) of section 23 shall be ...
26 Jurisdiction to try offences under this Act
.- No court inferior to that of a presidency magistrate or a magistrate of the first class shall take cognizable of or try any offence punishable under this A...
Miscellaneous
27 Title to dividends
- (1) It shall be lawful for the holder of any security whose name appears on the books of the company issuing the said security to receive and retain any di...
28 Act not to apply in certain cases
.- The provisions of this Act shall not apply to the Government in Reserve Bank of India, any local authority or any corporation set up under a special law or...
29 Protection of action taken in good faith
- No suit, prosecution or other legal proceeding whatsoever shall lie in any court against the governing body or any member, office bearer or servant of any r...
30 Power to make rules
(1) The Central Government may, by notification in the Official Gazette, make rules for the purpose of carrying into effect the objects of this Act.(2) In pa...
31 The Bombay Securities Contracts Control Act, 1925 (Bombay Act 8 of 1925), is hereby [repealed]
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