LawgistThe Securities Contracts (Regulation) Act
16Power to prohibit contracts in certain cases
(1) If the Central Government is of opinion that it is necessary to prevent undesirable speculations in specified securities in any State or area, it may, by notification in the Official Gazette, declare that no person in the State or area specified in the notification shall, save with the permission of the Central Government, enter into any contract for the sale or purchase of any security specified in the notification except to the extent and in the manner, if any, specified therein.
(2) All contracts in contravention of the provisions of sub-section (1) entered into after the date of the notification issued thereunder shall be illegal.
Download our fully-offline, High speed android app.- Click here
CONTRACTS AND OPTIONS IN SECURITIES
- 13 Contracts in notified areas illegal in certain circumstances
- 13A Additional trading floor
- 14 Contracts in notified areas to be void in certain circumstances
- 15 Members may not act as principals in certain circumstances
- 16 Power to prohibit contracts in certain cases
- 17 Licensing of dealers in securities in certain areas
- 17A Public issue and listing of securities referred to in sub-clause (ie) of clause (h) of section 2
- 18 Exclusion of spot delivery contracts from sections 13, 14, 15 and 17
- 18A Contracts in derivatives
- 19 Stock exchanges other than recognised stock exchanges prohibited
- 20 [Omitted.]
