Judgment

SUBBA RAO, J. : This is a petition under Art. 32 of the Constitution for the issue of a writ of mandamus or a writ in the nature of mandamus or any other appropriate direction, order or writ to direct the respondent, the Union of India, to withdraw or cancel the notification dated August 31, 1957, recognising "the Stock Exchange, Bombay under S. 4 of the Securities Contracts (Regulation) Act, 1956 (XLII of 1956), (hereinafter referred to as "the Act ).

2. At the outset it is necessary to notice briefly how a Stock Exchange is worked and how it is controlled or regulated by the State. "Stock Exchange means, "any body of individuals, whether incorporated or not, constituted for the purpose of assisting or controlling the business of buying, selling or dealing in securities . The history of stock exchanges in foreign countries as well as India shows that the development of joint stock enterprise would never have reached its present stage but for the facilities which the stock exchanges provided for dealing in securities. They have a very important function to fulfil in the country s economy. Their main function, in the words of an eminent writer, is "to liquify capital by