Forward Contracts (Regulation) Act,1952
Act No : 74
Section :
Power of Central Government to make or amend bye-laws of recognisedassociations.
12.Power of Central Government to make or amend bye-laws of recognised associations.(1) The Central Government may, either on a request in writing received by it in this behalf from the governing body of a recognised association, or if in its opinion it is expedient so to do, make bye-laws for all or any of the matters specified in section 11 or amend any bye-laws made by such association under that section. (2) Where, in pursuance of this section, any bye-laws have been made or amended, the bye-laws so made or amended shall be published in the Gazette of India 3[and shall thereupon have effect] as if they had been made or amended by the recognised association. (3) Notwithstanding anything contained in this section, where the governing body of a recognised association objects to any bye-laws made or amended under this section by the Central Government on its own motion, it may, within six months of the publication thereof under sub-section (2), apply to the Central Government for a revision thereof, and the Central Government may, after giving a reasonable opportunity to the governing body of the association to be heard in the matter, revise the bye-laws so made or amended, and where any bye- laws so made or amended are revised as a result of any action --------------------------------------------------------------------- 1 Ins. by Act 62 of 1960, s. 11. 2 Certain words omitted by s. 11, ibid. 3 Subs. by s. 12, ibid, for certain words. --------------------------------------------------------------------- 118 taken under this sub-section, the bye-laws so revised shall be published and shall become effective as provided in sub-section (2). (4) The making or the amendment or revision of any bye-laws under this section shall in all cases be I [subject to such conditions in regard to previous publication as may be prescribed] : Provided that the Central Government may, in the interest of the trade or in the public interest, by order in writing, dispense with the condition of previous publication. 2[12A.Application of amendment of bye-laws to existing forward contracts. Any amendmen. of a bye-law under section 11 other than an amendment made in pursuance of clause (a) or clause (aa) of sub- section (3) of that section or under section 12 shall also apply to all forward contracts entered into before the date of its approval by the Central Government or before the date of its publication in the Gazette of India, as the case may be, and remaining to be performed on or after the said date. 12B.Power of Commission to suspend member of recognised association or to prohibit him form trading. (1) If, in the interest of trade or in the public interest, the Commission considers it necessary to suspend a member from his membership of any recognised association or to prohibit such members from entering into any forward contract for the sale or purchase in his own name or through another member of a recognised association of any goods or class of goods, then, notwithstanding anything contained in any law for the time being in force or in the rules or bye-laws of a recognised association, the Commission may, after giving an opportunity to the member concerned of being heard, by order suspend his membership of any association or prohibit him from entering into any such contract. (2) An order made under sub-section (1) shall specify the period for which the suspension or prohibition is to have effect and such period may be extended from time to time but so as not to exceed three years in the aggregate. (3) No order made under sub-section (1) in respect of any member of a recognised association shall affect the validity of any forward contract entered into or made by, with or through such member on or before the date of such order and remaining to be performed on or after the said date; but the Commission may make such provision --------------------------------------------------------------------- 1 Subs. by Act 62 of 1960, s. 12, for "subject to the condition of previous publication ". 2 Ins. by s.13, ibid. --------------------------------------------------------------------- 119 as it deems fit in such order or in any subsequent order for the closing out of any such forward contract.]
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