Given below are two statements:
Statement I: According to the Securities Contracts (Regulation) Act 1956, a stock exchange means a body of individuals incorporated as a company under the Companies Act.
Statement II: According to the Securities Contracts (Regulation) Act 1956, a stock exchange is constituted for the purpose of assisting, regulating or controlling the business of dealing in securities.
In the light of the above statements, choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Statement I is incorrect but Statement II is correct.
Statement I: According to the Securities Contracts (Regulation) Act 1956, a stock exchange means a body of individuals incorporated as a company under the Companies Act. — Incorrect. The Act says any body of individuals, whether incorporated or not. A stock exchange need not be a company.
Statement II: According to the Securities Contracts (Regulation) Act 1956, a stock exchange is constituted for the purpose of assisting, regulating or controlling the business of dealing in securities. — Correct. This is the purpose given in the definition: assisting, regulating or controlling the business of buying, selling or dealing in securities.
NCERT (Pre-rationalised Edition):
|
