CONTRACTS IN DERIVATIVES :

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 stock exchange, or

(c) between such parties and on such terms as the Central Government may, by notification in the official Gazette, specify, in accordance with the rules and bye-laws of such stock exchange.