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The Securities Contracts (Regulation) Act, 1956

Central

An Act to prevent undesirable transactions in securities by regulating the business of dealing therein, by providing for certain other matters connected therewith.

Act number
42 of 1956
Ministry
Ministry of Finance
Department
Department of Economic Affairs
Enacted
4 Sep 1956

Source: IndiaCode Portal, Legislative Department, Ministry of Law and Justice, Government of India. Open on India Code Check against the official text before relying on it.

78 sections

  1. Section 1Short title, extent and commencement.
  2. Section 2Definitions.
  3. Section 2AInterpretation of certain words and expressions.
  4. Section 3Application for recognition of stock exchanges.
  5. Section 4Grant of recognition to stock exchanges.
  6. Section 4ACorporatisation and demutualisation of stock exchanges.
  7. Section 4BProcedure for corporatisation and demutualisation.
  8. Section 5Withdrawal of recognition.
  9. Section 6Power of Central Government to call for periodical returns or direct inquiries to be made.
  10. Section 7Annual reports to be furnished to the Central Government by stock exchanges.
  11. Section 7APower of recognised stock exchange to make rules restricting voting rights, etc.
  12. Section 8Power of Central Government to direct rules to be made or to make rules.
  13. Section 8AClearing corporation.
  14. Section 9Power of recognised stock exchanges to make bye-laws.
  15. Section 10Power of Securities and Exchange Board of India to make or amend bye-laws of recognised stock exchanges.
  16. Section 11Power of Central Government to supersede governing body of a recognised stock exchange.
  17. Section 12Power to suspend business of recognised stock exchanges.
  18. Section 12APower to issue directions.
  19. Section 13Contracts in notified areas illegal in certain circumstances.
  20. Section 13AAdditional trading floor.
  21. Section 14Contracts in notified areas to be void in certain circumstances.
  22. Section 15Members may not act as principals in certain circumstances.
  23. Section 16Power to prohibit contracts in certain cases.
  24. Section 17Licensing of dealers in securities in certain areas.
  25. Section 17APublic issue and listing of securities referred to in sub-clause (ie) of clause (h) of section 2.
  26. Section 18Exclusion of spot delivery contracts from sections 13, 14, 15 and 17.
  27. Section 18AContracts in derivatives.
  28. Section 19Stock exchanges other than recognised stock exchanges prohibited.
  29. Section 20[Omitted.].
  30. Section 21Conditions for listing.
  31. Section 21ADelisting of securities.
  32. Section 22Right of appeal against refusal by stock exchanges to list securities of public companies.
  33. Section 22ARight of appeal to Securities Appellate Tribunal against refusal of stock exchange to list securities of public companies.
  34. Section 22BProcedure and powers of Securities Appellate tribunal.
  35. Section 22CRight to legal representation.
  36. Section 22DLimitation.
  37. Section 22ECivil Court not to have jurisdiction.
  38. Section 22FAppeal to High Court.
  39. Section 23Penalties.
  40. Section 23APenalty for failure to furnish information, return, etc.
  41. Section 23BPenalty for failure by any person to enter into an agreement with clients.
  42. Section 23CPenalty for failure to redress Investors grievances.
  43. Section 23DPenalty for failure to segregate securities or moneys of client or clients.
  44. Section 23EPenalty for failure to comply with provision of listing conditions or delisting conditions or grounds.
  45. Section 23FPenalty for excess dematerialisation or delivery of unlisted securities.
  46. Section 23GPenalty for failure to furnish periodical returns, etc.
  47. Section 23GAPenalty for failure to conduct business in accordance with rules, etc.
  48. Section 23HPenalty for contravention where no separate penalty has been provided.
  49. Section 23-IPower to adjudicate.
  50. Section 23JFactors to be taken into account by the adjudicating officer.
  51. Section 23JASettlement of administrative and civil proceedings.
  52. Section 23JBRecovery of amounts.
  53. Section 23JCContinuance of proceedings.
  54. Section 23KCrediting sum realised by way of penalties to Consolidated Fund of India.
  55. Section 23LAppeal to Securities Appellate Tribunal.
  56. Section 23MOffences.
  57. Section 23NComposition of certain offences.
  58. Section 23-OPower to grant immunity.
  59. Section 24Offences by companies.
  60. Section 25Certain offences to be cognizable
  61. Section 26Cognizance of offences by courts.
  62. Section 26AEstablishment of Special Courts.
  63. Section 26BOffences triable by Special Courts.
  64. Section 26C. Appeal and Revision.
  65. Section 26DApplication of Code to proceedings before Special Court.
  66. Section 26ETransitional provisions.
  67. Section 27Title to dividends.
  68. Section 27ARight to receive income from collective investment scheme.
  69. Section 27BRight to receive income from mutual fund
  70. Section 28Act not to apply in certain cases.
  71. Section 29Protection of action taken in good faith.
  72. Section 29Apower to delegate
  73. Section 29BPowers of the Securities and Exchange Board of India not to apply to International Financial Services Centre.
  74. Section 30Power to make rules.
  75. Section 30ASpecial provisions related to commodity derivatives.
  76. Section 30BSpecial provisions related to pooled investment vehicle.
  77. Section 31Power of Securities and Exchange Board of India to make regulations.
  78. Section 32Validation of certain acts.