Section 18A - Contracts in derivative - SECURITIES CONTRACTS (REGULATION) ACT, 1956

1 [Contracts in derivative. 18A. Notwithstanding anything contained in any other law for the time 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.] 4 [ (ba) regulated by the International Financial Services Centres Authority established under section 4 of the International Financial Services Centres Authority Act, 2019 (50 of 2019), in an International Financial Services Centre and issued by a Foreign Portfolio Investor. Explanation. For the purposes of this clause, the expression Foreign Portfolio Investor shall have the meaning assigned to it in clause (u) of rule 2 of the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 made under section 46 of the Foreign Exchange Management Act, 1999 (42 of 1999); ] 3 [ (c) between such parties and on such terms as the Central Government may, by notification in the Official Gazette, specify,] ********** 1 Inserted by the Securities Laws (Amendment) Act, 1999, Sec 3, w.e.f. 22-2-2000. 2 Substituted vide Finance Act 2015 , w.e.f. 28.09.2015 before it was read as stock exchange, 3 Inserted vide Finance Act 2015 , w.e.f. 28.09.2015 4. Inserted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. ..................