Act Number: 42

Act Name: The Securities Contracts (Regulation) Act, 1956

Year: 1956

Enactment Date: 1956-09-04

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

Ministry: Ministry of Finance

Department: Department of Economic Affairs

Section 18A: Contracts in derivatives.
    1[18A. Contracts in derivatives.--Notwithstanding anything contained in any other law for the lime being in force, contracts in derivative shall be legal and valid if such contracts are--
         (a) traded on a recognised stock exchange;
         (b) settled on the clearing house of the recognised 2[stock exchange; or] in accordance with the rules and bye-laws of such stock exchange.]
         3[(c) between such parties and on such terms as the Central Government may, by notification in the Official Gazette, specify.]
Notes:
1. Ins. by Act 31 of 1999, s. 3 (w.e.f. 22-2-2000).
2. Subs. by Act 20 of 2015, s. 134, for "stock exchange ," (w.e.f. 14-5-2015)
3. Ins. by Act 20 of 2015, s. 134 (w.e.f. 14-5-2015)
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