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CS Executive · Capital Market and Securities Laws · Securities Contracts (Regulation) Act, 1956

An exchange's bye-law specifies that contravention of a particular bye-law will make a contract entered into otherwise than in accordance with it void. Which provision of Section 9 authorises the bye-laws to specify such bye-laws?

Section 9(3)(a) authorises it. Bye-laws may specify those bye-laws whose contravention makes a contract void under Section 14(1). Fines, expulsion and suspension fall under other provisions, and sub-section (4) only governs publication, so they do not give this power.

  1. ASection 9(2)(o), on levy of fines and penalties
  2. BSection 9(3)(a), by reference to Section 14(1)Correct
  3. CSection 9(3)(b)(i), on fine
  4. DSection 9(4), on publication in the Gazette

Explanation

Section 9(3)(a) allows bye-laws to specify those bye-laws whose contravention makes a contract entered into otherwise than in accordance with them void under sub-section (1) of Section 14. Clause (o) and (3)(b) deal with monetary and membership penalties, and sub-section (4) deals with publication.

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