Securities Contracts (Regulation) Act : Contracts in notified areas illegal in certain circumstances.

Securities Contracts (Regulation) Act,1956

Act No : 42

Section : Contracts in notified areas illegal in certain circumstances.

13.Contracts in notified areas illegal in certain circumstances.If the Central Government 'is satisfied, having regard to the nature or the volume of transactions in securities in any State or area, that it is necessary so to do,it may, by notification in the Official Gazette,declare this section 'to apply to such State or area, and thereupon an every contract in such State or area which is entered into after the date of the notification otherwise than between members of a recognised stock exchange in such State or area or through or with such member shall be illegal. 2[13A.Additional trading floor. A stock exchange may establish additional trading floor with the prior approval of the Securities and Exchange Board of India in accordance with the terms and conditions stipulated by the said Board. Explanation.- For the purposes of this section, "additional trading floor" means a trading ring or trading facility offered by a recognised stock exchange outside its area of operation to enable the investors to buy and sell securities through such trading floor under under the regulatory framework of that stock exchange.]