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The Securities Contracts (Regulation) Act, 1956 defines the term "Contract" in narrow, securities-specific terms. Which definition correctly captures its meaning under the Act?
Answer & Solution
Correct answer: A.
1. The Act defines "Contract" exclusively in securities terms.
2. It means a contract for or relating to the purchase or sale of securities.
3. The definition does not extend to general commercial agreements or real estate transactions.
4. Commodity derivatives are separately defined elsewhere in the Act.
_Source: ICSI CS Executive Paper 6 (Securities Laws and Capital Markets) — Lesson 1: Securities Contracts (Regulation) Act, 1956, pp. 4-21._
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