Corporate, Banking and Tax
The Securities Contracts (Regulation) Act, 1956
Act 42 of 1956 · 78 sections
Title, date and preamble
[4th September, 1956.]
An Act to prevent undesirable transactions in securities by regulating the business of dealing
therein, *** by providing for certain other matters connected therewith.
BE it enacted by Parliament in the Seventh Year of the Republic of India as follows:—
Contents
PRELIMINARY
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
- 17A.Public issue and listing of securities referred to in sub-clause (ie) of clause (h) of section 2
- 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 BY PUBLIC COMPANIES
- 21.Conditions for listing
- 21A.Delisting of securities
- 22.Right of appeal against refusal by 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 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
- 23GA.Penalty for failure to conduct business in accordance with rules, etc
- 23H.Penalty for contravention where no separate penalty has been provided
- 23I.Power to adjudicate
- 23J.Factors to be taken into account while adjudging quantum of penalty
- 23JA.Settlement of administrative and civil proceedings
- 23JB.Recovery of amounts
- 23JC.Continuance of proceedings
- 23K.Crediting sum 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.Contravention by companies
- 25.Certain offences to be cognizable
- 26.Cognizance of offences by courts
- 26A.Establishment of Special Courts
- 26B.Offences triable by Special Courts
- 26C.Appeal and Revision
- 26D.Application of Code to proceedings before Special Court
- 26E.Transitional provisions
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
- 29B.Powers of the Securities and Exchange Board of India not to apply to International Financial Services Centre
- 30.Power to make rules
- 30A.Special provisions related to commodity derivatives
- 30B.Special provisions related to pooled investment vehicle
- 31.Power of Securities and Exchange Board of India to make regulations
- 32.Validation of certain Acts