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

Bharat Commodities and Equities Exchange Ltd. wants to be recognised as a stock exchange under the Securities Contracts (Regulation) Act, 1956. Along with its application, what must it submit as per Section 3?

The applicant exchange must attach a copy of its bye-laws for regulation and control of contracts and a copy of its rules about its constitution, such as governing body, office bearers and membership, along with the prescribed particulars, as Section 3(2) provides.

  1. AOnly a list of its proposed listed companies
  2. BA copy of its bye-laws for regulation and control of contracts and a copy of its rules relating to its constitutionCorrect
  3. COnly an audited balance sheet of its promoters
  4. DA certificate from the Registrar of Companies about its share capital

Explanation

Section 3(2) requires the application to carry the prescribed particulars, a copy of the bye-laws for regulation and control of contracts, and a copy of the rules on the exchange's constitution (governing body, office bearers, membership, etc.). The other options are not required by that sub-section.

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