CS Executive · Capital Market and Securities Laws · Securities Contracts (Regulation) Act, 1956
A student reading the Securities Contracts (Regulation) Act, 1956 wants to know its territorial reach. Under the Act's short title and extent provision, how far does the Act extend?
The Securities Contracts (Regulation) Act, 1956 extends to the whole of India, as stated in section 1(2). Its reach is not confined to States or cities with a stock exchange, nor does it exclude Union Territories.
- AOnly to States having a recognised stock exchange
- BTo the whole of IndiaCorrect
- COnly to the metropolitan cities where exchanges operate
- DTo India except Union Territories
Explanation
Section 1(2) states that the Act extends to the whole of India. It is not limited to places with exchanges, to metros, or to States only. The distractors add territorial limits that the section does not contain.
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