THE SECURITIES CONTRACTS (REGULATION) ACT, 1956

ACT NO. 42 OF 1956 · Enacted [4th September, 1956.] · 76 sections

PRELIMINARY

Section 1.Short title, extent and commencement.

Section 2.Definitions.

Section 2A.Interpretation of certain words and expressions.

RECOGNISED STOCK EXCHANGE

Section 3.Application for recognition of stock exchanges.

Section 4.Grant of recognition to stock exchanges.

Section 4A.Corporatisation and demutualisation of stock exchanges.

Section 4B.Procedure for corporatisation and demutualisation.

Section 5.Withdrawal of recognition.

Section 6.Power of Central Government to call for periodical returns or direct inquiries to be made.

Section 7.Annual reports to be furnished to the Central Government by stock exchanges.

Section 7A.Power of recognised stock exchange to make rules restricting voting rights, etc.

Section 8.Power of Central Government to direct rules to be made or to make rules.

Section 8A.Clearing corporation.

Section 9.Power of recognised stock exchanges to make bye-laws.

Section 10.Power of Securities and Exchange Board of India to make or amend bye-laws of recognised stock exchanges.

Section 11.Power of Central Government to supersede governing body of a recognised stock exchange.

Section 12.Power to suspend business of recognised stock exchanges.

Section 12A.Power to issue directions.

CONTRACTS AND OPTIONS IN SECURITIES

Section 13.Contracts in notified areas illegal in certain circumstances.

Section 13A.Additional trading floor.

Section 14.Contracts in notified areas to be void in certain circumstances.

Section 15.Members may not act as principals in certain circumstances.

Section 16.Power to prohibit contracts in certain cases.

Section 17.Licensing of dealers in securities in certain areas.

Section 17A.Public issue and listing of securities referred to in sub-clause (ie) of clause (h) of section 2.

Section 18.Exclusion of spot delivery contracts from sections 13, 14, 15 and 17.

Section 18A.Contracts in derivatives.

Section 19.Stock exchanges other than recognised stock exchanges prohibited.

Section 20.[Omitted.].

LISTING OF SECURITIES BY PUBLIC COMPANIES

Section 21.Conditions for listing.

Section 21A.Delisting of securities.

Section 22.Right of appeal against refusal by stock exchanges to list securities of public companies.

Section 22A.Right of appeal to Securities Appellate Tribunal against refusal of stock exchange to list securities of public companies.

Section 22B.Procedure and powers of Securities Appellate tribunal.

Section 22C.Right to legal representation.

Section 22D.Limitation.

Section 22E.Civil Court not to have jurisdiction.

Section 22F.Appeal to Supreme Court.

PENALTIES AND PROCEDURE

Section 23.Penalties.

Section 23-I.Power to adjudicate.

Section 23-O.Power to grant immunity.

Section 23A.Penalty for failure to furnish information, return, etc.

Section 23B.Penalty for failure by any person to enter into an agreement with clients.

Section 23C.Penalty for failure to redress Investors grievances.

Section 23D.Penalty for failure to segregate securities or moneys of client or clients.

Section 23E.Penalty for failure to comply with provision of listing conditions or delisting conditions or grounds.

Section 23F.Penalty for excess dematerialisation or delivery of unlisted securities.

Section 23G.Penalty for failure to furnish periodical returns, etc.

Section 23GA.Penalty for failure to conduct business in accordance with rules, etc.

Section 23H.Penalty for contravention where no separate penalty has been provided.

Section 23J.Factors to be taken into account while adjudicating quantum of penalty.

Section 23JA.Settlement of administrative and civil proceedings.

Section 23JB.Recovery of amounts.

Section 23JC.Continuance of proceedings.

Section 23K.Crediting sum realised by way of penalties to Consolidated Fund of India.

Section 23L.Appeal to Securities Appellate Tribunal.

Section 23M.Offences.

Section 23N.Composition of certain offences.

Section 24.Contravention by companies.

Section 25.Certain offences to be cognizable.

Section 26.Cognizance of offences by courts.

Section 26A.Establishment of Special Courts.

Section 26B.Offences triable by Special Courts.

Section 26C.Appeal and Revision.

Section 26D.Application of Code to proceedings before Special Court.

Section 26E.Transitional provisions.

MISCELLANEOUS

Section 27.Title to dividends.

Section 27A.Right to receive income from collective investment scheme.

Section 27B.Right to receive income from mutual fund.

Section 28.Act not to apply in certain cases.

Section 29.Protection of action taken in good faith.

Section 29A.power to delegate.

Section 30.Power to make rules.

Section 30A.Special provisions related to commodity derivatives.

Section 31.Power of Securities and Exchange Board of India to make regulations.

Section 32.Validation of certain acts.