Home | | Merchant Banking and Financial Services | SCRA (Security contract regulation Act)

Chapter: Business Science : Merchant Banking and Financial Services : Merchant Banking

SCRA (Security contract regulation Act)

The Securities Contracts (Regulations) Act was passed in 1956 by Parliament and it came into force in February 1957.

SCRA (Security contract regulation Act):

 

The Securities Contracts (Regulations) Act was passed in 1956 by Parliament and it came into force in February 1957. An act to prevent undesirable transactions in securities by regulating the business of dealing therein, by providing for certain other matters connected therewith. 1. This Act may be called the Securities Contracts (Regulation) Act, 1956. 2. It extends to the whole of India.

 

2.     It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

 

Definitions

 

a.  Contract  means  a  contract  for  or  relating  to  the  purchase  or  sale  of  securities;

 

b.   Corporatization means the succession of a recognized stock exchange, being a Body of individuals or a society registered under the Societies Registration Act, 1860 (21 of 1860), by another stock exchange, being a company incorporated for The purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities carried on by such individuals or society;

 

c.  demutualization means the segregation of ownership and management from the trading rights of the members of a recognized stock exchange in accordance with a scheme approved by the Securities and Exchange Board of India;

 

(d) Derivative includes:

 

a. a security derived from a debt instrument, share, loan, whether secured or unsecured, risk instrument or contract for differences or any other form of security; b. a contract which derives its value from the prices, or index of prices, of underlying securities;

c.    Government security means a security created and issued, whether before or after the commencement of this Act, by the Central Government or a State Government for the purpose of raising a public loan and having one of the forms specified in clause (2) of section 2 of the Public Debt Act, 1944 (18 of 1944);

 

d. Member means a member of a recognized stock exchange;

 

e. Option in securities means a contract for the purchase or sale of a right to buy or sell, or a right

 

to buy and sell, securities in future, and includes a teji, a mandi, a teji mandi, a galli, a put, a call or a put and call in securities;

 

f.Recognized― stock exchange means a stock exchange which is for the time being recognized by the Central Government under section 4;

 

g. Stock exchange which may provide for

 

(i)   The issue of shares for a lawful consideration and provision of trading rights in lieu of membership cards of members of a recognized stock exchange;

 

(ii) The restrictions on voting rights;

 

the transfer of property, business, assets, rights, liabilities, recognitions, contracts of the recognized stock exchange, legal proceedings by, or against, the recognized stock exchange, whether in the name of the recognized stock exchange or any trustee or otherwise and any permission  given to, or by, the recognized stock exchange;

 

(iv)    the transfer of employees of a recognized stock exchange to another recognized stock exchange;

 

(iv)           any other matter required for the purpose of, or in connection with, the corporatization or

 

demutualization,   as    the    case    may    be,    of    the    recognized    stock    exchange

 

h.   Securities include i. shares, scrip‘s,stocks,bonds, debentures, debenture stock or other marketable securities of a like nature in or of any incorporated company or other body corporate;

 

(h) Government securities;

 

i.  Such other instruments as may be declared by the Central Government to be securities; and ii. rights or interest in securities;

 

(j). Stock Exchange means a anybody of individuals, whether incorporated or not, constituted before corporatization and demutualization under sections 4A and 4B, or b. a body corporate incorporated under the Companies Act 1956 whether under a scheme of corporatization and demutualization or otherwise, for the purpose of assisting, regulating or controlling the business of buying.


Study Material, Lecturing Notes, Assignment, Reference, Wiki description explanation, brief detail
Business Science : Merchant Banking and Financial Services : Merchant Banking : SCRA (Security contract regulation Act) |


Privacy Policy, Terms and Conditions, DMCA Policy and Compliant

Copyright © 2018-2024 BrainKart.com; All Rights Reserved. Developed by Therithal info, Chennai.