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PETITIONER: MADHUBHAI AMATHALAL GANDHI
Vs.
RESPONDENT: THE UNION OF INDIA.
DATE OF JUDGMENT: 17/08/1960
BENCH: SUBBARAO, K. BENCH: SUBBARAO, K. SINHA, BHUVNESHWAR P.(CJ) KAPUR, J.L. GAJENDRAGADKAR, P.B. WANCHOO, K.N.
CITATION: 1961 AIR 21 1961 SCR (1) 191 CITATOR INFO : RF 1964 SC 648 (46) R 1972 SC1982 (4) R 1987 SC1527 (21)
ACT: Stock Exchange-Rules for membership-Notification laying conditions restricting membership-Classification between active members and others-Whether unreasonable or infringed fundamental rights-Securities Contracts (Regulation) Act, 1956, (42 of 1956) s. 4. --Securities-Contracts (Regulation) Rules, 1957, rr. 17-22.
HEADNOTE: The Securities Contracts (Regulation) Act, 1956, was enacted with the object of preventing undesirable transactions in securities by regulating the stock exchange business, and the Act conferred an effective controlling power on the Central Government over the stock exchange. In exercise of the power conferred on the Central Government to make rules the Central Government made rules described as the Securities Contracts (Regulation) Rules, 1957, providing, inter alia, for the qualification for membership of a stock exchange seeking recognition etc. After the Act came into force two Companies, namely, the Native Share and Stock Brokers’ Association and the Indi...