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Section 12 of the SCRA empowers the Central Government to suspend the business of a recognised stock exchange in an emergency. What is the initial maximum period for which such a suspension order may run?
Answer & Solution
Correct answer: D.
1. Section 12 lets the CG suspend stock exchange business when an emergency arises.
2. The first notification can suspend business for a period not exceeding seven days.
3. The period can be extended later, but only after giving the governing body a hearing.
4. So the statutory cap on the first emergency suspension is seven days.
_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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