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Under Section 9 of the SCRA, a recognised stock exchange may make bye-laws for regulating and controlling contracts. What is the statutory precondition for such bye-laws to take effect?

Answer & Solution
Correct answer: B.
1. Section 9 governs bye-law making by a recognised stock exchange. 2. The statute requires prior approval of SEBI before the bye-laws can be made. 3. RBI has no role in approving SCRA bye-laws. 4. There is no requirement of a High Court declaration or a vote of listed companies on the exchange. _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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