Securities Contracts (Regulation) Act, 1956

[42 of 1956]

 

Preliminary

1.                  Short title, extent and commencement.

2.                  Definitions.

2A       Interpretation of certain words and expressions.

 

RECOGNISED STOCK EXCHANGES

3.         Application for recognition of stock exchanges.

4.                  Grant of recognition to stock exchanges.

4A.      Corporatisation and demutualisation of stock exchanges.

4B       Procedure for corporatisation and demutualisation.

5.                  Withdrawal of recognition.

6.                  Power of Central Government to call for periodical returns or direct inquiries to be made.

7.                  Annual reports to be furnished to Central Government by stock exchanges.

7A       Power of recognised stock exchange to make rules restricting voting rights, etc.

8.                  Power of Central Government to direct rules to be made or to make rules.

8A       Clearing corporation.

9.                  Power of recognised stock exchanges to make bye-laws.

10.              Power of Securities and Exchange Board of India to make or amend bye-laws of recognised stock exchanges.

11.              Power of Central Government to supersede governing body of a recognised stock exchange.

12.              Power to suspend business of recognised stock exchanges.

12A     Power to issue directions.

 

CONTRACTS AND OPTIONS IN SECURITIES

13.              Contracts in notified areas illegal in certain circumstances.

13A     Additional trading floor.

14.              Contracts in notified areas to be void in certain circumstances.

15.              Members may not act as principals in certain circumstances.

16.              Power to prohibit contracts in certain cases.

17.              Licensing of dealers in securities in certain areas.

18.              Exclusion of spot delivery contracts from sections 13, 14, 15 and 17.

18A     Contracts in derivative.

19        Stock exchanges other than recognised stock exchanges prohibited.

20        Prohibition of options in securities.

 

LISTING OF SECURITIES [***]

21        Conditions for listing.

21A     Delisting of securities.

22        Right of appeal against refusal of stock exchanges to list securities of public companies.

22A     Right of appeal to Securities Appellate Tribunal against refusal of stock exchange to list securities of public companies.

22B     Procedure and powers of Securities Appellate Tribunal.

22C     Right to legal representation.

22D     Limitation.

22E      Civil court not to have jurisdiction.

22F      Appeal to Supreme Court.

 PENALTIES AND PROCEDURE

23.              Penalties.

23A     Penalty for failure to furnish information, return, etc.

23B     Penalty for failure by any person to enter into an agreement with clients.

23C     Penalty for failure to redress investors’ grievances.

23D     Penalty for failure to segregate securities or moneys of client or clients.

23E      Penalty for failure to comply with provision of listing conditions or delisting conditions or grounds.

23F      Penalty for excess dematerialisation or delivery of unlisted securities.

23G     Penalty for failure to furnish periodical returns, etc.

23H     Penalty for contravention where no separate penalty has been provided.

23I       Power to adjudicate.

23J      Factors to be taken into account by adjudicating officer.

23K     Crediting sums realised by way of penalties to Consolidated Fund of India.

23L      Appeal to Securities Appellate Tribunal.

23M    Offences.

23N     Composition of certain offences.

23O     Power to grant immunity.

24        Offences by companies.

25                Certain offences to be cognizable.

26                Cognizance of offences by courts.

 

MISCELLANEOUS

27.              Title to dividends.

27A     Right to receive income from collective investment scheme.

27B     Right to receive income from mutual fund.

28        Act not to apply in certain cases.

29                Protection of action taken in good faith.

29A     Power to delegate.

30                Power to make rules.

31                Power of Securities and Exchange Board of India to make regulations.