Central Act

The Securities Contracts (Regulation) Act, 1956

1[18A. Contracts in derivatives.--Notwithstanding anything contained in any other law for the lime being in force, contracts in derivative shall be legal and valid if such contracts are-- (a) traded on a recognised stock exchange; (b) settled on the clearing house of the recognised 2[stock exchange; or] in accordance with the rules and bye-laws of such stock exchange.] 3[(c) between such parties and on such terms as the Central Government may, by notification in the Official Gazette, specify.]