Important judgments under SCRA Some of the important judgment | LEGAL POD

Important judgments under SCRA

Some of the important judgments under the Securities Contracts (Regulations) Act, 1956 are:

MCX Stock Exchange Limited Versus Securities & Exchange Board of India, Writ Petition No. 213 of 2011 dated 14th March, 2012 (Bombay High Court)

The Bombay High Court in this case, clarified the validity of option contracts under the Securities Contracts (Regulation) Act, 1956 and stated that option contracts are different from forward contracts. The distinction was specified because forward contracts are prohibited under the Act and the Bombay High Court held that option contracts are valid contracts under the Act.

The Madras Stock Exchange Limited Versus S.S.R. Rajakumar, Original Side Application No. 64 of 1995 dated 25th February, 2003 (Madras High Court)

The Madras High Court, in this case, reversed the wrongful expulsion of the respondent who was made liable to pay the applicant a sum of Rs. 30 lakhs by a subordinate court. The Madras High Court further held that the officers of a recognised stock exchange cannot be held liable for following the Articles of the recognised stock exchange.

Parikh Versus Union of India, Special Civil Application No. 17040 of 2012 with Writ Petition (Public Interest Litigation) No. 211 of 2012 dated 07th May, 2014 (Gujarat High Court)

In this case before the Gujarat High Court, the Petitioner had challenged the legality and validity of certain circulars and the Securities Contracts (Regulation) (Stock Exchange and Clearing Corporations) Regulations, 2012 issued by the Securities and Exchange Board of India stating that they are inconsistent with the provisions of the Indian Constitution, Securities Contracts (Regulation) Act, 1956 and the erstwhile Companies Act, 1956. The Gujarat High Court dismissed the petition of the Petitioner in this case and upheld the validity of all the challenged circulars and regulations.