SECURITIES CONTRACTS REGULATION ACT, 1353F

Act No. 07 of 1353F

15th Bahman 1353 Fasli

WHEREAS it is expedient to make provisions to regulate and have control over the sale and purchase of securities and other transactions and contracts pertaining thereto; It is hereby enacted as follows:--

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S.1 Short title, extent and commencement

(1) This Act may be called the Securities Contracts Regulation Act.

(2) The Government may enforce this Act in the City of Hyderabad and also at any other place in H.E.H. the Nizam's Dominions from such date as they may in their discretion notify in the Jarida for this purpose.

(3) The Securities Contracts Regulation No. XXI dated 3rd Thir, 1352 Fasli shall be deemed to have been repealed from the commencement of this Act.

S.2 Definitions

In this Act unless there is anything repugnant in the subject or context--

• (1) "securities" include stocks, shares, bonds, debentures, debenture-stocks and other securities of a like nature.
• (2) "stock-exchange" means the society, association, or body of persons, whether incorporated or not, established for the purpose of assisting, regulating and controlling the sale and purchase of and dealing in or other transactions of stocks, shares, bonds, debentures, debenture-stocks and other securities of a like nature.
• (3) "recognised stock-exchange" means the stock-exchange recognised by the Government under sub-section (2) of section 3.
• (4) "ready delivery contract" means a contract for the sale and purchase of securities for performance of which no period is fixed and the performance of which is intended to be immediate or within a reasonable period.

S.3 Procedure for recognition of stock-exchange

(1) A stock-exchange desirous of being recognised for the purposes of this Act shall make an application in writing to the Government for recognition of stock-exchange and shall submit along with it the rules for the assistance, regulation and control of and dealings in or other transactions of the sale and purchase of securities for the approval of the Government and shall also furnish such other information in this regard as the Government may require from it.

(2) The Government may recognise a stock-exchange provided that the rules submitted by the stock-exchange under sub-section (1) have been published in the Jarida one month prior to the recognition thereof.

(3) The Government may refuse to recognise a Stock-exchange or withdraw recognition of any stock-exchange. Thereupon it shall cease to be a recognised stock-exchange.

S.4 Power to make rules

(1) A stock-exchange, subject to the sanction of the Government, may make rules for the assistance regulation and control and dealings in or other transaction of the sale and purchase of securities.

(2) Without prejudice to the generality of sub-section (1), such rules may inter alia, relate to the following matters:--

• (a) regulation of the stock exchange by a managing body and the constitution of such managing body;
• (b) the powers and duties of the managing body and the manner in which its business shall be transacted;
• (c) the fixing of a scale of charges;
• (d) the stage and manner of commencement, settlement and ceasing of interest;
• (e) the regulation of dealing by members for their own account.
• (f) the settlement of mutual disputes of the members and the punishment of the defaulting member.

(3) The rules under sub-section (1) or (2) shall be published in the Jarida one month prior to their approval by

S.5 Contracts in contravention of rules to be void

(1) Every contract for the sale or purchase of securities entered into after a date fixed by the Government for this purpose by a notification in the Jarida shall be void unless the same is made subject to and in accordance with the rules approval under section 3; and every contract shall be void unless the same is made between members or through a member of a recognised stock-exchange.

(2) No Civil Court shall pass a decree in any suit for any commission, brokerage, fee, or reward in respect of any void contract.