Ravi Wadher Rohit Jain Manoj Malvi

(52) (17) (27)

Stock exchanges in India are regulated and controlled by the Securities Contracts (Regulation) Act,1956 (ACT NO.42 OF 1956). The objects clause describes the Act as An Act to prevent undesirable transactions in securities by regulating the business of dealing therein, by providing for certain other matters connected therewith."

Stock Exchange" means any body of individuals, whether incorporated or not, constituted for the purpose of assisting, regulating or controlling the business of buying , selling or dealing in securities."

In order to prevent undesirable transactions in Securities Contracts Regulations Act was enacted by the parliament . This act provides for direct and indirect control of virtually all aspects of securities trading in the stock market.

To provide for regulation of stock exchanges. To provide for regulation of transactions in securities. To prevent undesirable speculation in securities. To regulate the buying and selling of securities outside the limits of stock exchanges by licensing securities dealers. To provide for certain other related matters.

Government Reserve Bank of India Any local authority or any corporation setup by a special law Any convertible bond or share warrant

In Sudhir Shantilal Mehta vs. Central Bureau of Investigation [2010]155CompCas339(SC), commenting on the scope of securities encompassed by the definition of the term in Section 2(h) of the Securities Contracts (Regulation) Act, 1956, the Honble Supreme Court of India, at paragraphs 41 and 42, observed as follows: "41. The definition of `securities' is an inclusive one. It is not exhaustive. It takes within its purview not only the matters specified therein but also all other types of securities as commonly understood. The term `securities', thus, should be given an expansive meaning.

42. In State of Bombay v. The Hospital Mazdoor Sabha AIR 1960 SC 610 this Court while interpreting the definition of "industry" as contained in Section 2(j) of the Industrial Disputes Act, 1947 held as under: In B.K. Holdings (P) Ltd. v. Prem Chand Jute Mills (1983) 53 Comp Cas 367 (Cal), the learned Single Judge while interpreting the expression marketable securities held as follows: I see no warrant whatsoever for limiting the expression marketable securities only to those securities which are quoted in the stock exchange.