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

Under the SCRA, 1956, a recognised stock exchange that has not yet been corporatised and demutualised becomes bound to do so on a particular date. Who fixes this 'appointed date'?

SEBI fixes the appointed date by notification in the Official Gazette. Section 4A allows different appointed dates for different recognised stock exchanges, and from that date non-corporatised exchanges must be corporatised and demutualised under the procedure in section 4B.

  1. AThe Central Government through the Ministry of Corporate Affairs
  2. BThe Securities and Exchange Board of India by notification in the Official GazetteCorrect
  3. CThe governing board of the stock exchange itself
  4. DThe Registrar of Companies of the state where the exchange is located

Explanation

Section 4A defines the appointed date as the date SEBI appoints by notification in the Official Gazette, and different dates may be fixed for different exchanges. The Central Government, the exchange board or the RoC has no such role under the section.

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