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    Question

    A contract which provides for the delivery of goods and

    the payment of a price therefor, either immediately, or within such period not exceeding eleven days after the date of the contract is called
    A Ready delivery contract Correct Answer Incorrect Answer
    B Spot delivery contract Correct Answer Incorrect Answer
    C Transferable specific delivery contract Correct Answer Incorrect Answer
    D Non-transferable specific delivery contract Correct Answer Incorrect Answer
    E Specific delivery contract Correct Answer Incorrect Answer

    Solution

    Under the Securities Contracts (Regulation) Act 1956 Section 2(ea) - “Ready delivery contract ” means a contract which provides for the delivery of goods and the payment of a price therefor, either immediately, or within such period not exceeding eleven days after the date of the contract and subject to such conditions as the Central Government may, by notification in the Official Gazette, specify in respect of any goods, the period under such contract not being capable of extension by the mutual consent of the parties thereto or otherwise: Provided that where any such contract is performed either wholly or in part; (I) by realisation of any sum of money being the difference between the contract rate and the settlement rate or clearing rate or the rate of any offsetting contract; or (II) by any other means whatsoever, and as a result of which the actual tendering of the goods covered by the contract or payment of the full price therefor is dispensed with, then such contract shall not be deemed to be a ready delivery contract Section 2(ha) - “specific delivery contract ” means a commodity derivative which provides for the actual delivery of specific qualities or types of goods during a specified future period at a price fixed thereby or to be fixed in the manner thereby agreed and in which the names of both the buyer and the seller are mentioned Section 2(i) - “spot delivery contract” means a contract which provides for— (a) actual delivery of securities and the payment of a price therefor either on the same day as the date of the contract or on the next day, the actual period taken for the dispatch of the securities or the remittance of money therefor through the post being excluded from the computation of the period aforesaid if the parties to the contract do not reside in the same town or locality; (b) transfer of the securities by the depository from the account of a beneficial owner to the account of another beneficial owner when such securities are dealt with by a depository; Section 2(ca) - “non-transferable specific delivery contract ” means a specific delivery contract, the rights or liabilities under which or under any delivery order, railway receipt, bill of lading, warehouse receipt or any other documents of title relating thereto are not transferable Section 2(k) - “transferable specific delivery contract ” means a specific delivery contract which is not a non-transferable specific delivery contract and which is subject to such conditions relating to its transferability as the Central Government may by notification in the Official Gazette, specify in this behalf.

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