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CS Executive · Capital Market and Securities Laws · Secondary Market in India

Ananya Securities Exchange Ltd. wants to be recognised under the Securities Contracts (Regulation) Act, 1956. To whom must it make its application for recognition?

The application for recognition must be made to the Central Government in the prescribed manner. Section 3(1) of the SCRA says a stock exchange wanting recognition applies to the Central Government, not to the RBI, the Registrar of Companies or another exchange.

  1. AThe Central GovernmentCorrect
  2. BThe Reserve Bank of India
  3. CThe Registrar of Companies
  4. DThe governing body of the largest recognised exchange

Explanation

Section 3(1) provides that a stock exchange desirous of being recognised makes an application in the prescribed manner to the Central Government. The RBI and the Registrar of Companies have no role in granting recognition under this section.

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