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Section 7A of the SCRA enables a recognised stock exchange to make rules restricting voting rights of its members. Which restriction is specifically contemplated by Section 7A?
Answer & Solution
Correct answer: A.
1. Section 7A allows the SE to restrict voting rights to members only.
2. It further allows a rule that each member has one vote only.
3. This vote is independent of the member's paid-up equity capital.
4. Volume-weighted, director-only and shareholder-wide voting models are not the Section 7A formula.
_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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