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

Under Section 30A of the SCRA, 1956, what is the general position regarding non-transferable specific delivery contracts in commodity derivatives?

The Act generally does not apply to non-transferable specific delivery contracts. However, in areas where section 13 applies, no one may organise or be a member of an association other than a stock exchange that allows performance without actual delivery. The Central Government may extend provisions in public interest.

  1. AThe Act does not apply to them, though associations cannot facilitate their performance without actual delivery in areas where section 13 appliesCorrect
  2. BThe whole Act applies to them without exception
  3. CThey are void unless traded on a recognised stock exchange
  4. DThey may be settled by differences through any association

Explanation

Section 30A(1) says nothing in the Act applies to non-transferable specific delivery contracts, but the proviso bars organising or being a member of an association (other than a stock exchange) in section 13 areas that lets parties perform without actual delivery. Government may still apply provisions under 30A(3) in public interest.

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