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Core Purpose

Notification under sub-clause (D) of clause (ac) of section 2 of the Securities Contracts (Regulation) Act, 1956 declaring option contracts on notified underlying goods to be a 'derivative' for purposes of the Act, in supersession of a 2019 notification.

Detailed Summary

The Ministry of Finance, Department of Economic Affairs, through notification S.O. 1003(E) dated 1st March 2024, exercised powers under sub-clause (D) of clause (ac) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) to declare a contract for the purchase or sale of a right to buy or sell, or a right to buy and sell in future, underlying goods notified under clause (bc) of section 2 of the Act, as a "derivative" for the purposes of the Act. The notification supersedes the Ministry's earlier notification S.O. 3743(E) dated 18th October 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii), except as respects things done or omitted to be done before such supersession. The notification was issued under file reference F. No. 17/2/2016-CD (Part-II) and signed by Ms. Surbhi Jain, Joint Secretary.

Full Text

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-01032024-252553 EXTRAORDINARY PART II-Section 3-Sub-section (ii) PUBLISHED BY AUTHORITY No. 958] NEW DELHI, FRIDAY, MARCH 1, 2024/PHALGUNA 11, 1945 1463 GI/2024 MINISTRY OF FINANCE (Department of Economic Affairs) NOTIFICATION New Delhi, the 1st March, 2024 S.O. 1003(E). In pursuance of the provision of sub-clause (D) of clause (ac) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956), and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Economic Affairs vide number S.O. 3743(E), dated the 18th October, 2019, published in the Gazette of India, Extraordinary, Part-II, Section-3, sub-section (ii) dated the 18th October 2019, except as respects things done or omitted to be done before such supersession, the Central Government hereby declares a contract for the purchase or sale of a right to buy or sell, or a right to buy and sell in future, such underlying goods, as notified under clause (bc) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956), as a derivative for the purposes of the said Act. [F. No. 17/2/2016-CD (part -II)] Ms. SURBHI JAIN, Jt. Secy.

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