Section 18A of SCRA : Section 18A: Contracts In Derivatives
SCRA
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Explanation using Example
Imagine that Raj is an investor who wants to hedge his investment in the stock market by entering into a futures contract, which is a type of derivative. According to Section 18A of The Securities Contracts (Regulation) Act, 1956, Raj's futures contract would be considered legal and valid under the following conditions:
- The futures contract is traded on the National Stock E...
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