Question
What can be the maximum representation of Central
Government on any stock exchange?Solution
Section 4 of SCRA - Grant of recognition to stock exchanges (2) The conditions which the Central Government may prescribe under clause (a) of sub-section (1) for the grant of recognition to the stock exchanges may include, among other matters, conditions relating to, — (i) the qualifications for membership of stock exchanges; (ii) the manner in which contracts shall be entered into and enforced as between members (iii) the representation of the Central Government on each of the stock exchanges by such number of persons not exceeding three as the Central Government may nominate in this behalf; and (iv) the maintenance of accounts of members and their audit by Chartered accountants wherever such audit is required by the Central Government.
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