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Section 18A

Contracts in Derivatives.

1[18A. Contracts in derivatives.--Notwithstanding anything contained in any other law for the lime being in force, contracts in derivative shall be legal and valid if such contracts are--

(a) traded on a recognised stock exchange;

(b) settled on the clearing house of the recognised 2[stock exchange; or] in accordance with the rules and bye-laws of such stock exchange.]

3[(c) between such parties and on such terms as the Central Government may, by notification in the Official Gazette, specify.]




1. Ins. by Act 31 of 1999, s. 3 (w.e.f. 22-2-2000).

2. Subs. by Act 20 of 2015, s. 134, for "stock exchange ," (w.e.f. 14-5-2015)

3. Ins. by Act 20 of 2015, s. 134 (w.e.f. 14-5-2015)