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Under Section 6 read with the SCRA, every recognised stock exchange and each of its members must maintain and preserve the prescribed books of accounts and documents for a maximum period. What is that maximum period?

Answer & Solution
Correct answer: B.
1. Section 6 deals with periodical returns and direct enquiries by the CG and SEBI. 2. It requires recognised stock exchanges and their members to maintain books and documents. 3. The maximum retention period prescribed is "not exceeding five years". 4. After that period, the documents may be destroyed unless the CG prescribes otherwise. _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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