Section 16
Power to prohibit contracts in certain cases.
The Securities Contracts (Regulation) Act, 1956
About this Act
An Act to prevent undesirable transactions in securities by regulating the business of dealing therein, by providing for certain other matters connected therewith.
(1) If the Central Government is of opinion that
it is necessary to prevent undesirable speculations in specified securities in any State or area, it may, by
notification in the Official Gazette, declare that no person in the State or area specified in the notification
shall, save with the permission of the Central Government, enter into any contract for the sale or purchase
of any security specified in the notification except to the extent and in the manner, if any, specified
therein.
(2) All contracts in contravention of the provisions of sub-section (1) entered into after the date of the notification issued thereunder shall be illegal.
(2) All contracts in contravention of the provisions of sub-section (1) entered into after the date of the notification issued thereunder shall be illegal.