If the Central Government is
satisfied, having regard to the nature or the volume of transactions in securities in any 2[State or States or
area], that is necessary so to do, it may, by notification in the Official Gazette, declare this section to
apply to such 1[State or States or area], and thereupon every contract in such 1[State or States or area] which is entered into after the date of the notification otherwise than 3[between members of a recognised
stock exchange or recognised stock exchanges] in such 1[State or States or area] or through or with such
member shall be illegal.
4[Provided that any contract entered into between members of two or more recognised stock exchanges in such State or States or area, shall--
(i) be subject to such terms and conditions as may be stipulated by the respective stock exchanges with prior approval of Securities and Exchange Board of India;
(ii) require prior permission from the respective stock exchanges if so stipulated by the stock exchanges with prior approval of the Securities and Exchange Board of India.]
4[Provided that any contract entered into between members of two or more recognised stock exchanges in such State or States or area, shall--
(i) be subject to such terms and conditions as may be stipulated by the respective stock exchanges with prior approval of Securities and Exchange Board of India;
(ii) require prior permission from the respective stock exchanges if so stipulated by the stock exchanges with prior approval of the Securities and Exchange Board of India.]
1. Ins. by Act 27 of 2014, s. 24 (w.e.f. 8-9-2014).
2. Subs. by Act 1 of 2005, s. 7, for State or area (w.e.f. 12-10-2004).
3. Subs. by s. 7, ibid., for between members of a recognised stock exchange (w.e.f. 12-10-2004).
4. The proviso ins. by s. 7, ibid. (w.e.f. 12-10-2004).