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Questions and Answers
What is the primary purpose of the Securities Contracts (Regulation) Act, 1956?
What is the primary purpose of the Securities Contracts (Regulation) Act, 1956?
- To establish a mechanism for the recovery of amounts realised by way of penalties
- To provide a framework for the settlement of administrative and civil proceedings
- To delegate powers to the Securities and Exchange Board of India
- To regulate the business of dealing in securities and prevent undesirable transactions (correct)
Under which section of the Act can the Securities Appellate Tribunal hear appeals?
Under which section of the Act can the Securities Appellate Tribunal hear appeals?
- Section 23L
- Section 23M
- Section 23L
- Section 23JB (correct)
What is the purpose of Section 23K of the Act?
What is the purpose of Section 23K of the Act?
- To provide a framework for the composition of certain offences
- To credit sums realised by way of penalties to the Consolidated Fund of India (correct)
- To establish a mechanism for the recovery of amounts realised by way of penalties
- To settle administrative and civil proceedings
What is the purpose of Section 23N of the Act?
What is the purpose of Section 23N of the Act?
Under which section of the Act can the Securities and Exchange Board of India make regulations?
Under which section of the Act can the Securities and Exchange Board of India make regulations?
What is the purpose of Section 28 of the Act?
What is the purpose of Section 28 of the Act?
Under which section of the Act can the Central Government delegate powers to the Securities and Exchange Board of India?
Under which section of the Act can the Central Government delegate powers to the Securities and Exchange Board of India?
What is the purpose of Section 26A of the Act?
What is the purpose of Section 26A of the Act?
What is the maximum time period for the Central Government to supersede the governing body of a recognised stock exchange?
What is the maximum time period for the Central Government to supersede the governing body of a recognised stock exchange?
What is the purpose of Section 6 of the Securities Contracts (Regulation) Act, 1956?
What is the purpose of Section 6 of the Securities Contracts (Regulation) Act, 1956?
What is the provision that deals with the power of the Central Government to issue directions to stock exchanges?
What is the provision that deals with the power of the Central Government to issue directions to stock exchanges?
What is the purpose of Section 7 of the Securities Contracts (Regulation) Act, 1956?
What is the purpose of Section 7 of the Securities Contracts (Regulation) Act, 1956?
What is the provision that deals with the power of the recognised stock exchange to make rules restricting voting rights?
What is the provision that deals with the power of the recognised stock exchange to make rules restricting voting rights?
What is the purpose of Section 4A of the Securities Contracts (Regulation) Act, 1956?
What is the purpose of Section 4A of the Securities Contracts (Regulation) Act, 1956?
What is the provision that deals with the power of the Central Government to suspend the business of recognised stock exchanges?
What is the provision that deals with the power of the Central Government to suspend the business of recognised stock exchanges?
What is the purpose of Section 3 of the Securities Contracts (Regulation) Act, 1956?
What is the purpose of Section 3 of the Securities Contracts (Regulation) Act, 1956?
What is the purpose of a Government security as per the Securities Contracts (Regulation) Act, 1956?
What is the purpose of a Government security as per the Securities Contracts (Regulation) Act, 1956?
What is meant by 'demutualisation' under the Securities Contracts (Regulation) Act, 1956?
What is meant by 'demutualisation' under the Securities Contracts (Regulation) Act, 1956?
What is included in the definition of a 'contract' under the Securities Contracts (Regulation) Act, 1956?
What is included in the definition of a 'contract' under the Securities Contracts (Regulation) Act, 1956?
What is meant by 'corporatisation' under the Securities Contracts (Regulation) Act, 1956?
What is meant by 'corporatisation' under the Securities Contracts (Regulation) Act, 1956?
What is a 'commodity derivative' under the Securities Contracts (Regulation) Act, 1956?
What is a 'commodity derivative' under the Securities Contracts (Regulation) Act, 1956?
What does 'goods' mean under the Securities Contracts (Regulation) Act, 1956?
What does 'goods' mean under the Securities Contracts (Regulation) Act, 1956?
When does the Securities Contracts (Regulation) Act, 1956 come into force?
When does the Securities Contracts (Regulation) Act, 1956 come into force?
What is a 'derivative' under the Securities Contracts (Regulation) Act, 1956?
What is a 'derivative' under the Securities Contracts (Regulation) Act, 1956?
Flashcards
Securities Contracts (Regulation) Act of 1956
Securities Contracts (Regulation) Act of 1956
An act regulating the securities market to prevent undesirable transactions.
Contract (Securities)
Contract (Securities)
A contract related to buying or selling securities.
Corporatisation
Corporatisation
One stock exchange taking over another to manage securities.
Demutualisation
Demutualisation
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Derivative
Derivative
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Government Security
Government Security
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Goods (in context of Commodity Derivative)
Goods (in context of Commodity Derivative)
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Commodity Derivative
Commodity Derivative
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Recognised Stock Exchange
Recognised Stock Exchange
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Sections in the Act
Sections in the Act
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Powers of Central Government
Powers of Central Government
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Powers of Recognized Stock Exchanges
Powers of Recognized Stock Exchanges
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Application for Recognition of Stock Exchange
Application for Recognition of Stock Exchange
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Grant of Recognition
Grant of Recognition
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Withdrawal of Recognition
Withdrawal of Recognition
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Special Courts
Special Courts
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Appeal and Revision
Appeal and Revision
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Validation of certain acts
Validation of certain acts
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Study Notes
The Securities Contracts (Regulation) Act, 1956
Preliminary
- The Securities Contracts (Regulation) Act, 1956 is an Act to prevent undesirable transactions in securities by regulating the business of dealing therein.
- The Act extends to the whole of India and came into force on a date appointed by the Central Government.
- The Act defines various terms, including "contract", "corporatisation", "demutualisation", "derivative", "Government security", "goods", and "commodity derivative".
Definitions
- A "contract" refers to a contract for or relating to the purchase or sale of securities.
- "Corporatisation" means the succession of a recognised stock exchange by another stock exchange, being a company incorporated for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities.
- "Demutualisation" refers to the segregation of ownership and management from the trading rights of the members of a recognised stock exchange in accordance with a scheme approved by the Securities and Exchange Board of India.
- A "derivative" includes a security derived from a debt instrument, share, loan, contract for differences, or any other form of security.
- A "Government security" means a security created and issued by the Central Government or a State Government for the purpose of raising a public loan.
- "Goods" means every kind of movable property other than actionable claims, money, and securities.
- A "commodity derivative" refers to a contract for the delivery of notified goods, which is not a ready delivery contract.
Arrangement of Sections
- The Act consists of 32 sections, divided into three parts: Preliminary, Recognised Stock Exchange, and Miscellaneous.
- The sections deal with topics such as application for recognition of stock exchanges, grant of recognition, withdrawal of recognition, powers of Central Government, and powers of recognised stock exchanges.
- The Act also provides for the establishment of Special Courts, appeal and revision, and validation of certain acts.
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Description
This quiz is based on the Securities Contracts (Regulation) Act, 1956, which deals with the regulation of securities contracts in India. It covers the preliminary sections, definitions, and interpretation of key terms.
