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1994 (1) TMI 211 - SUPREME COURTStock Exchanges - Grant of recognition to - With a view to providing improved services to investors, Central Government while replying to letter of Delhi Stock Exchange conveyed its approval on 5-2-1987 to proposal for increasing membership by 250 members - New members admitted through public issue of shares and through dilution of existing shareholding were required to pay to Delhi Stock Exchange a deposit of Rs. 3 lakhs, and Rs. 1 lakh respectively - Selection of members was to be made on objective criteria taking into consideration experience, professional qualifications and other relevant factors through an Expert Committee to be constituted for that purpose - On writ, terms of approval granted by Central Government were questioned on ground that they were arbitrary, illegal and void and violative of article 14 -Constitution of Expert Committee was also challenged as violative of article 14 on account of inclusion of directors/members of Delhi Stock Exchange therein -Whether members of public and authorised assistants of members of Delhi Stock Exchange did not constitute a homogeneous group and condition in regard to higher deposit from those belonging to first category as compared to those belonging to second category was constitutionally valid - Held, yes - Whether as selection of members of Expert Committee was purely by members of Board of Directors, it would be wrong to say that constitution of Expert Selection Committee was arbitrary - Held, yes - Whether selection of members of Stock Exchange could be set aside merely on ground that a large number of chartered accountants were selected and merely because some of them had qualified only recently - Held, no - Whether Supreme Court can issue a mandate for enhancing number of members of stock exchange - Held, no
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