Section 2 - Definition - Forward Contracts (Regulation) Act, 1952

2. Definition In this Act, unless the context otherwise requires, - (a) association means anybody of individuals whether incorporated or not, constituted for the purpose of regulating and controlling the business of the sale or purchase of any goods; (b) commission means the Forward Markets commission established under sec. 3; (c) forward contract, means a contract for the delivery of goods 1 [* * **] and which is not a ready delivery contract: (d) goods means every kind of movable property other than actionable claims, money and securities; (e) Government security means a Government security as defined in the Public Debt Act, 1944 (XVIII OF 1944); (f) non-transferable specific delivery contract means a specific delivery contract, the rights or liabilities under which or under any delivery order, railway receipt, bill of lading, warehouse receipt or any other documents of title relating thereto are not transferable; (g) option in goods means an agreement, by whatever name called, for the purchase or sale of a right to buy or sell, or a right to buy and sell, goods in future and includes a teji, a mandi, a teji-mandi, a galli, a put, a call or a put, and call in goods; (h) prescribed means prescribed by rules made under this Act; (i) ready delivery contract means a contract which provides for the delivery of goods and the payment of a price therefor, either immediately or within such period not exceeding eleven days after the date of the contract and subject to such conditions as the central Government may, by notification in the official Gazette, specify in respect of any goods, the period under such contract not being capable of extension by the mutual consent of the parties thereto or otherwise; 2 [Provided that where any such contract is performed either wholly or in part:- (1) by tendering of the documents of title to the goods covered by the contract by any party thereto (not being a commission agent or a bank) who has acquired ownership of the said documents by purchase, exchange or otherwise, to any other person (including a commission agent but not including a bank); or (2) by the realisation of any sum of money being the difference between the contract rate and the settlement rate or clearing rate or the rate of any offsetting contract; or (3) by any other means whatsoever, and as a result of which the actual tendering of the goods covered by the contract or payment of the full-price therefor is dispensed with then such contract shall not be deemed to be a ready delivery contract. Explanation. - For the purpose of this clause. - (i) bank includes any banking company as defined in the Banking Regulation Act, 1949 (110 of 1949), a co-operative bank as defined in the Reserve Bank of India Act, 1934 (2 of 1934), the State Bank of India and any of its subsidiaries and any corresponding new bank constituted under Sec. 3 of the Banking Companies (Acquisition and Transfer of Undetakings) Act, 1970 (5 of 1970); (ii) commission agent means a person who, in the ordinary course of business, makes contract for the sale or purchase of goods for others for a remuneration (whether known as commission or otherwise) which is determined in the contract itself or determinable from the terms of the contract in either case, only with reference to the quantity of goods or to the price therefor as stipulated in the contract; 3 [(j) recognised association means an association to which recognition for the time being has been granted by the Central Government under Sec. 6 in respect of goods or classes of goods specified in such recognition; (jj) registered association means an association to which for the time being a certificate of registration has been granted by the commission under Sec. 14-B] (k) rules with reference to the rules relating in general to the constitution and management of an association, includes in the case of an incorporated association, its memorandum and articles of association; (l) securities includes shares, scripts, stocks, bonds, debentures, debenture-stocks, or other marketable securities of a like nature in or of any incorporated company or other body corporate and also government securities: (m) specific delivery contract means a forward contract which provides for the actual delivery of specific qualities or types of goods during a specified future period at a price fixed thereby or to be fixed in the manner thereby agreed and in which the names of both the buyer and the seller are mentioned: (n) transferable specific delivery contract means specific delivery contract which is not a non-transferable specific delivery contract 4 [and which is subject to such conditions relating to its transferability as the Central Government may by notification in the official Gazette, specify in this behalf. ] ******** 1 The words at future date omitted by Act 53 of 1971, Section 2(w.e.f. 11.10.1971). 2 Added by Act 53 of 1971, Section 2 (w.e.f. 11.10.1971). 3 Substituted by Act 62 of 1960, Section 3 (w.e.f. 28.12.1960). 4 Inserted by Act 62 of 1960, Section 3 (w.e.f. 28.12.1960).