Spot Delivery contracts are those where.........
(a) actual delivery of securities and the payment of a price therefore either on
the same day as the date of the contract or on the next day, the actual period
taken for the despatch of the securities or the remittance of money therefore
through the post being excluded from the computation of the period
aforesaid if the parties to the contract do not reside in the same town or
locality;
(b) transfer of the securities by the depository from the account of a beneficial
owner to the account of another beneficial owner when such securities are
dealt with by a depository;]
Exclusion of spot delivery contracts from sections 13, 14, 15 and 17.
18. (1) Nothing contained in sections 13, 14, 15 and 17 shall apply to spot delivery
contracts.
(2) Notwithstanding anything contained in sub-section (1), if the Central Government1 is
of opinion that in the interest of the trade or in the public interest it is expedient to
regulate and control the business of dealing in spot delivery contracts also in any State or
area (whether section 13 has been declared to apply to that State or area or not), it may,
by notification in the Official Gazette, declare that the provisions of section 17 shall also
apply to such State or area in respect of spot delivery contracts generally or in respect of
spot delivery contracts for the sale or purchase of such securities as may be specified in
the notification, and may also specify the manner in which, and the extent to which, the
provisions of that section shall so apply.
48
[Additional trading floor.
13A. A stock exchange may establish additional trading floor with the prior approval of
the Securities and Exchange Board of India in accordance with the terms and conditions
stipulated by the said Board.
Explanation: For the purposes of this section, “additional trading floor” means a trading
ring or trading facility offered by a recognised stock exchange outside its area of
operation to enable the investors to buy and sell securities through such trading floor
under the regulatory framework of that stock exchange.]
Probably this may clear.........
CAclubindia
