Question

    Who has the power to prohibit sale or purchase of any

    security to prevent undesirable speculation in specified securities in any State or area?
    A Central Government Correct Answer Incorrect Answer
    B SEBI Correct Answer Incorrect Answer
    C SCRA Correct Answer Incorrect Answer
    D Depository Correct Answer Incorrect Answer
    E Securities Appellate Tribunal Correct Answer Incorrect Answer

    Solution

    Section 16 of SCRA Power to prohibit contracts in certain cases— (1) If the Central Government is of opinion that it is necessary to prevent undesirable speculation in specified securities in any State or area, it may, by notification in the Official Gazette, declare that no person in the State or area specified in the notification shall, save with the permission of the Central Government, enter into any contract for the sale or purchase of any security specified in the notification except to the extent and in the manner, if any, specified therein. (2) All contracts in contravention of the provisions of sub-section (1) entered into after the date of the notification issued thereunder shall be illegal.

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