The Securities Contracts (Regulation) Act, 1956, is an important piece of legislation in the Indian financial system that regulates the securities market in the country. It was enacted by the Indian Parliament to safeguard investors` interests and to ensure transparency and fairness in the securities market.
The Act defines securities as shares, bonds, debentures, and other instruments of similar nature, which are traded in the securities market. It lays down rules and regulations for the issuance, trading, and settlement of securities transactions in the market. The Act also establishes certain regulatory institutions such as the Securities and Exchange Board of India (SEBI) to oversee and regulate the securities market in the country.
The Securities Contracts (Regulation) Act, 1956, was amended in 1995 to include new provisions for the registration of stockbrokers, sub-brokers, and other intermediaries involved in the securities market. The amendment also introduced penalties for insider trading, market manipulation, and other fraudulent practices associated with securities trading.
In Hindi, the Securities Contracts (Regulation) Act, 1956, is known as `सुरक्षा अनुबंध (विनियामक) अधिनियम, 1956.` The Hindi version of the Act is equally important for investors and traders in the country who may not be proficient in English.
The Securities Contracts (Regulation) Act, 1956, has played a crucial role in shaping the securities market in India. It has helped to establish a transparent and fair market that protects investors` interests and promotes healthy competition. The Act has also made the securities market more accessible to small and medium-sized investors, who can now participate in the market with confidence.
Overall, the Securities Contracts (Regulation) Act, 1956, is a crucial piece of legislation that regulates the securities market in India. It ensures that the market operates in a transparent and fair manner, and protects the interests of all stakeholders involved in the securities market. Investors and traders should be familiar with the provisions of the Act to make informed decisions about their investments and trades.