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

Under the Securities Contracts (Regulation) Act, 1956, which statement about the application of the Act's provisions on recognition and related matters to a clearing corporation is correct?

Sections 4, 5, 6, 7, 8, 9, 10, 11 and 12 apply to a clearing corporation, as far as may be, in the same way they apply to a recognised stock exchange. The words 'as far as may be' allow adaptation to its nature.

  1. ASections 4 to 12 apply to it, as far as may be, as they apply to a recognised stock exchangeCorrect
  2. BNone of the provisions applicable to stock exchanges apply to it
  3. COnly the provisions on penalties apply to it, and no others
  4. DSections 4 to 12 apply to it in full, with no 'as far as may be' qualification

Explanation

Section 8A(4) applies sections 4 to 12 to a clearing corporation, as far as may be, as they apply to a recognised stock exchange. The qualifier 'as far as may be' means adaptation where needed, so the 'in full without qualification' option is wrong.

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