Page 212 - DCOM510_FINANCIAL_DERIVATIVES

Unit 13: Regulatory Framework

Notes

Notes Failure for this purpose means a shortfall for three consecutive trading days of 50%
or more of the liquid net worth of the member.

Self Assessment

Choose the correct answer from the following options:

10. The regulatory framework for the derivatives market in India has been developed by
which of the following?
(a) L. C. Gupta committee

(b) J. R. Varma Committee
(c) A. C. Gupta Committee
(d) None of the above
11. As per the requirement of SEBI, derivatives exchange must have a minimum of how many
members?
(a) 100
(b) 50
(c) 75

(d) 25
12. The minimum net worth for clearing members of the derivatives clearing corporation/
house shall be:

(a) ` 300 lakh
(b) ` 250 lakh
(c) ` 500 lakh

(d) None of the above
13.4 Securities Contracts (Regulation) Act

The Securities Contracts (Regulation) Act, 1956 [SC(R)A] was enacted to prevent undesirable
transactions in securities by regulating the business of dealing therein and by providing for
certain other matters connected therewith. This is the principal Act, which governs the trading
of securities in India.
The definitions of some of the important terms are given below:

‘Recognised Stock Exchange’ means a stock exchange, which is for the time being recognised by the
Central Government under Section 4 of the SC(R)A.

Did u know? ‘Stock Exchange’ means anybody of individuals, whether incorporated or not,
constituted for the purpose of assisting, regulating or controlling the business of buying,
selling or dealing in securities.

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