Which section of the Securities Contracts (Regulation) Act, 1956 deals with granting recognition to stock exchanges?
Question and options
Which section of the Securities Contracts (Regulation) Act, 1956 deals with granting recognition to stock exchanges?
Section 3
Section 4
Section 5
Section 2
Answer and explanation
Correct answer: B - Section 4
Section 4 of the Securities Contracts (Regulation) Act, 1956 deals with the grant of recognition to a stock exchange once the Government is satisfied about its rules and the public interest. Section 3 covers the application for recognition and section 5 the withdrawal of recognition.
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