Act 42 of 1956

The Securities Contracts (Regulation) Act, 1956

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

  • Ministry of Finance
  • Department of Economic Affairs
  • Enacted 1956-09-04
  • 78 sections
SectionTitle
1 Short title, extent and commencement. Read
2 Definitions. Read
2A Interpretation of certain words and expressions. Read
3 Application for recognition of stock exchanges. Read
4 Grant of recognition to stock exchanges. Read
4A Corporatisation and demutualisation of stock exchanges. Read
4B Procedure for corporatisation and demutualisation. Read
5 Withdrawal of recognition. Read
6 Power of Central Government to call for periodical returns or direct inquiries to be made. Read
7 Annual reports to be furnished to the Central Government by stock exchanges. Read
7A Power of recognised stock exchange to make rules restricting voting rights, etc. Read
8 Power of Central Government to direct rules to be made or to make rules. Read
8A Clearing corporation. Read
9 Power of recognised stock exchanges to make bye-laws. Read
10 Power of Securities and Exchange Board of India to make or amend bye-laws of recognised stock exchanges. Read
11 Power of Central Government to supersede governing body of a recognised stock exchange. Read
12 Power to suspend business of recognised stock exchanges. Read
12A Power to issue directions. Read
13 Contracts in notified areas illegal in certain circumstances. Read
13A Additional trading floor. Read
14 Contracts in notified areas to be void in certain circumstances. Read
15 Members may not act as principals in certain circumstances. Read
16 Power to prohibit contracts in certain cases. Read
17 Licensing of dealers in securities in certain areas. Read
17A Public issue and listing of securities referred to in sub-clause (ie) of clause (h) of section 2. Read
18 Exclusion of spot delivery contracts from sections 13, 14, 15 and 17. Read
18A Contracts in derivatives. Read
19 Stock exchanges other than recognised stock exchanges prohibited. Read
20 [Omitted.]. Read
21 Conditions for listing. Read
21A Delisting of securities. Read
22 Right of appeal against refusal by stock exchanges to list securities of public companies. Read
22A Right of appeal to Securities Appellate Tribunal against refusal of stock exchange to list securities of public companies. Read
22B Procedure and powers of Securities Appellate tribunal. Read
22C Right to legal representation. Read
22D Limitation. Read
22E Civil Court not to have jurisdiction. Read
22F Appeal to High Court. Read
23 Penalties. Read
23A Penalty for failure to furnish information, return, etc. Read
23B Penalty for failure by any person to enter into an agreement with clients. Read
23C Penalty for failure to redress Investors grievances. Read
23D Penalty for failure to segregate securities or moneys of client or clients. Read
23E Penalty for failure to comply with provision of listing conditions or delisting conditions or grounds. Read
23F Penalty for excess dematerialisation or delivery of unlisted securities. Read
23G Penalty for failure to furnish periodical returns, etc. Read
23GA Penalty for failure to conduct business in accordance with rules, etc.Read
23H Penalty for contravention where no separate penalty has been provided. Read
23-I Power to adjudicate.Read
23J Factors to be taken into account by the adjudicating officer.Read
23JA Settlement of administrative and civil proceedings.Read
23JB Recovery of amounts.Read
23JC Continuance of proceedings.Read
23K Crediting sum realised by way of penalties to Consolidated Fund of India.Read
23L Appeal to Securities Appellate Tribunal.Read
23M Offences.Read
23N Composition of certain offences.Read
23-O Power to grant immunity.Read
24 Offences by companies.Read
25 Certain offences to be cognizableRead
26 Cognizance of offences by courts.Read
26A Establishment of Special Courts.Read
26B Offences triable by Special Courts.Read
26C . Appeal and Revision.Read
26D Application of Code to proceedings before Special Court.Read
26E Transitional provisions.Read
27 Title to dividends.Read
27A Right to receive income from collective investment scheme.Read
27B Right to receive income from mutual fundRead
28 Act not to apply in certain cases.Read
29 Protection of action taken in good faith.Read
29A power to delegateRead
29B Powers of the Securities and Exchange Board of India not to apply to International Financial Services Centre.Read
30 Power to make rules.Read
30A Special provisions related to commodity derivatives.Read
30B Special provisions related to pooled investment vehicle.Read
31 Power of Securities and Exchange Board of India to make regulations.Read
32 Validation of certain acts.Read
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