The Securities Contracts (Regulation) Act 1956 was enacted to prevent undesirable securities trading and regulate the operation of stock exchanges in the country. The provision of the Act entered into force on 20 February 1957, see Notification No. 528 of 16 February 1957. Corporatization [section 2(aa)] is the successor to a recognized stock exchange that is a natural partnership or a company registered on another stock exchange under the Companies Registration Act 1860 (21 of 1860), a corporation formed for the purpose of supporting, regulating or controlling the purchase, sale or trading of securities exercised by such persons or companies. The Securities Contracts (Regulation) Act 1956 deals with stock exchanges, securities contracts and listing of securities on stock exchanges and supervises all exchanges in India and prevents unwanted contracts in the securities market through a continuous recognition and monitoring process. for the purpose of supporting, regulating or controlling the buying, selling or trading of securities. If a recognized stock exchange refuses to place on the stock exchange the securities of a public limited company or a collective investment undertaking, the company or the system may lodge a complaint with the central government against this refusal, omission or omission, as the case may be: 3.2: Each of these applications must contain the necessary information and be accompanied by a copy of the statutes of the exchange for the regulation and control of contracts and a copy of the rules. be. Concerning the establishment of the stock exchange in general Where transferable securities are listed on a recognised stock exchange at the request of a person, that person shall comply with the conditions of the listing agreement with that stock exchange. § 22 – Right of appeal against the refusal of stock exchanges to list securities of public limited companies 21A paragraph 1: A recognized stock exchange may withdraw the securities from the list after registration of the reasons for one of the reasons provided for in this Law, provided that the securities of a company are not withdrawn from the stock exchange until that time, if the undertaking concerned has had a reasonable opportunity to be heard. 9(1) A recognized stock exchange may, subject to the prior agreement of SEBI, adopt a statute for the regulation and control of contracts.
(Please click here for these statutes) 10(1) SEBI may, either at the request of the management body of a recognised stock exchange or ex officio, adopt statutes for all or part of the matters referred to in Article 9 or amend a statute adopted by that exchange pursuant to this section. The central administration shall have the power to suspend the activity of the recognized stock exchange in case of urgency by means of a statement of reasons in the Official Journal for a maximum period of seven days and under the conditions laid down in the notification. However, in the interest of trading or the public, that period may be extended from time to time, provided that such a period of suspension cannot be extended, unless the management body of the recognised stock exchange has had the opportunity to be heard on the matter. 4B Paragraph 2: Upon receipt of the scheme, SEBI shall make any necessary request and if it is satisfied that it can approve the scheme with or without amendment. The provisions of the Limitation Act of 1963 (36 of 1963) apply, to the extent that this may be the case, to an appeal to a securities appeal tribunal. Demutualization [Section 2(ab)] means the separation of ownership and management of the commercial rights of members of a recognized exchange under a system approved by the Securities and Exchange Board of India (SEBI). (Please click here for other definitions of the act) The recognized scholarship (article 2 (f)) is a scholarship currently recognized by the central government in accordance with article 4 of the Act. From the specified date, all recognized exchanges (unless they are corporatized and demutualized before the specified date) will be credited and demutualized in accordance with the provisions of Section 4B. Power of recognized scholarships to issue statutes (§ 9) Sebi authority to issue or amend the statutes of recognized scholarships (§ 10) Each recognized scholarship must submit to SEBI the prescribed periodic declarations on its affairs. Each recognized scholarship and each of its members shall keep these books and other documents for a maximum period of five years. .
Corporatisation and demutualisation procedure (section 4B) Note: “Date of appointment”: the date which SEBI may fix by notification to the Official Journal and different designated dates may be determined for different recognised stock exchanges. 4(1): If the central government is satisfied, it may, after any necessary investigation, grant recognition of the scholarship under certain conditions. . Power of the central government to request periodic reports or direct investigations (Article 6) 3, paragraph 1): Any exchange wishing to be recognised for the purposes of this Law may submit a request to the central government in the prescribed manner (the powers of the central government with regard to this law may be exercised by SEBI) 4B (1): All recognized exchanges referred to in Article 4A establish a system of Corporatization and demutualization for approval before (A) Recognized exchanges (B) Sanctions Brief description of the important articles of the law:. if the Exchange has omitted or failed to sell the application for authorization to exchange shares or debentures on the Stock Exchange within the period provided for in Section 73(1) of the Companies Act 1956 (1 of 1956) (hereinafter referred to in this section as the “Specified Period”), within fifteen days of the expiration of the specified period or within an additional period; which does not exceed one month, as allowed by the central government if there is sufficient reason. 21A (2): A listed company or an aggrieved investor may appeal to the Securities Appeal Tribunal (SAT) against the decision of the recognized stock exchange within fifteen days of the date of the decision of the recognized stock exchange, provided that LA SAT, if it is satisfied that the company has been prevented from appealing within that period for good cause, allow submission within an additional period of not more than one month. Application for recognition of scholarships (section 3) Annual reports to be submitted to the central government by the scholarships (article 7) The main parts of the law are as follows and the powers of the central government with regard to this law may be exercised by DER SEBI:. Each recognized scholarship shall provide the central government with a copy of the annual report […].
