Section 13 - Contracts in notified areas illegal in certain circumstances - Securities Contracts (Regulation) Act, 1956

CONTRACTS AND OPTIONS IN SECURITIES Contracts in notified areas illegal in certain circumstances. 13. If the Central Government 1 is satisfied, having regard to the nature or the volume of transactions in securities in any 2 [State or States or area] that it is necessary so to do, it may, by notification in the Official Gazette, declared this section to apply to such 3 [State or States or area], and thereupon every contract in such 4 [ State or States or area] which is entered into after the date of the notification otherwise than 5 [ between members of a recognised stock exchange or recognised stock exchanges] in such 6 [ State or States or area] or through or with such member shall be illegal : 7 [ Provided that any contract entered into between members of two or more recognised stock exchanges in such State or States or area, shall- (i) be subject to such terms and conditions as may be stipulated by the respective stock exchanges with prior approval of Securities and Exchange Board of India; (ii) require prior permission from the respective stock exchanges if so stipulated by the stock exchanges with prior approval of Securities and Exchange Board of India.] ********* 1 Powers are exercisable by SEBI also vide S. O. 672 (E), Dated 13-09-1994, published in the Gazette of India, Extra., Pt. II, Section 3 (ii), Dated 13-09-1994. 2 Substituted for State or area by the Securities Laws (Amendment) Act, 2004, Sec 7, w.e.f.. 12-10-2004. 3 Substituted for State or area by the Securities Laws (Amendment) Act, 2004, Sec 7, w.e.f.. 12-10- 2004. 4 Substituted for State or area by the Securities Laws (Amendment) Act, 2004, Sec 7, w.e.f.. 12-10-2004. 5 Substituted by the Securities Laws (Amendment) Act, 2004, Sec 7, w.e.f.. 12- 10-2004 for between members of a recognised stock exchange . 6 Substituted for State or area by the Securities Laws (Amendment) Act, 2004, Sec 7, w.e.f.. 12-10-2004. 7 Inserted by the Securities Laws (Amendment) Act, 2004, Sec 7, w.e.f.. 12-10-2004.