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    Question

    Can business of stock exchange be suspended?

    A No the business of the stock exchange cannot be suspended at all except when its affairs are held in a manner detrimental to the interest of trade or public Correct Answer Incorrect Answer
    B Yes SAT can suspend the business of stock exchange Correct Answer Incorrect Answer
    C Yes SEBI can suspend the business of the stock exchange Correct Answer Incorrect Answer
    D Yes central government can suspend the business for a period not exceeding 7 days for reasons to be set out Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Section 12 SCRA - Power to suspend business of recognised stock exchanges—If in the opinion of the Central Government an emergency has risen and for the purpose of meeting the emergency the Central Government considers it expedient so to do, it may, by notification in the Official Gazette, for reasons to be set out therein, direct a recognised stock exchange to suspend such of its business for such period not exceeding seven days and subject to such conditions as may be specified in the notification, and, if, in the opinion of the Central Government, the interest of the trade or the public interest requires that the period should be extended, may, by like notification extend the said period from time to time: Provided that where the period of suspension is to be extended beyond the first period, no notification extending the period of suspension shall be issued unless the governing body of the recognized association stock exchange has been given an opportunity of being heard in the matter

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