Definitions Of  Stock Exchanges :

Section 2 of this Act contains definitions of various terms used in the Act. Some of the important definitions are given below:

Securities

Securities include –

(i) shares, scrips, stocks, bonds, debentures, debenture stock or other marketable securities of a like nature in or of any incorporated company or body corporate.

(ii) derivative.

(iii) units or any other instrument issued by any collective investment scheme to the Investors in such schemes.

(iv) security receipt as defined in clause (zg) of Section 2 of the Securitisation and Reconstruction of Financial
Assets and Enforcement of Security Interest Act, 2002.

(v) units or any other such instrument issued to the investors under any mutual fund scheme. Explanation : “securities” shall not include any unit linked insurance policy or scripts or any such instrument or unit, by whatever name called, which provides a combined benefit risk on the life of the persons and investment by such person and issued by an insurer referred to in clause (9) of section 2 of the Insurance Act, 1938.

(vi) any certificate or instrument (by whatever name called)issued to an investor by any issuer being a special purpose distinct entity which possess any debt or receivable, including mortgage debt, assigned to such entity, and acknowledging beneficial interest of such investor in such debt or receivable, including mortgage debt, as the case may be.

(vii) government securities.

(viii) such other instruments as may be declared by the Central Government to be securities and,

(ix) rights or interests in securities.

Spot delivery contract

Spot delivery contract means a contract which provides for –

(a) actual delivery of securities and the payment of a price therefore either on the same day as the date of the contract or on the next day, the actual period taken for the dispatch of the securities or the remittance of money therefore through the post being excluded from the computation of the period aforesaid if the parties to the contract do not reside in the same town or locality;

(b) transfer of the securities by the depository from the account of a beneficial owner to the account of another beneficial owner when such securities are dealt with by a depository.

Stock Exchange

Stock Exchange means –

(a) any body of individuals, whether incorporated or not, constituted before corporatisation and demutualisation under Sections 4A and 4B, or

(b) a body corporate incorporated under the Companies Act, 2013 whether under a scheme of corporatisation and demutualisation or otherwise, for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities.

Recognised Stock Exchange

Recognised Stock Exchange means a stock exchange which is for the time being recognised by the Central Government.

Government security

Government security means a security created and issued whether before or after the commencement of this Act, by the Central Government or a State Government for the purpose of raising a public loan and having one of the forms specified in clause (2) of section 2 of the Public Debt Act, 1944.

Derivative

A derivative includes –

(a) a security derived from a debt instrument, share, loan, whether secured or unsecured, risk instrument or contract for differences or any other form of security and;

(b) a contract which derives its value from the prices or index of prices, of underlying securities.

(c) Commodity derivatives; and

(d) such other instruments as may be declared by the Central Government to be derivatives.