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Core Purpose

Notification making the Securities Contracts (Regulation) Amendment Rules, 2025, further to amend the Securities Contracts (Regulation) Rules, 1957.

Detailed Summary

The Ministry of Finance (Department of Economic Affairs), in exercise of powers conferred by section 30 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956), hereby makes the Securities Contracts (Regulation) Amendment Rules, 2025. These rules further amend the Securities Contracts (Regulation) Rules, 1957, and shall come into force on the date of their publication in the Official Gazette. Specifically, rule 8 of the 1957 Rules is amended by inserting a further proviso in sub-rule (1), clause (f), after the first proviso, and in sub-rule (3), after clause (f) and the first proviso. The inserted proviso states that investments made by a member shall, at all times, not be construed as business except when such investments involve client funds or client securities, or relate to arrangements which are in the nature of creating a financial liability on the broker. The principal rules were published vide S.R.O. 576, dated 21st February, 1957, and last amended vide G.S.R. 664 (E), dated 27th June, 2017. This notification is issued as G.S.R. 318(E) on 19th May, 2025.

Full Text

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-21052025-263215 EXTRAORDINARY PART II-Section 3-Sub-section (i) PUBLISHED BY AUTHORITY No. 275] NEW DELHI, MONDAY, MAY 19, 2025/ VAISAKHA 29, 1947 MINISTRY OF FINANCE (Department of Economic Affairs) NOTIFICATION New Delhi, the 19th May, 2025 G.S.R. 318(E).—In exercise of the powers conferred by section 30 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956), the Central Government hereby makes the following rules further to amend the Securities Contracts (Regulation) Rules, 1957, namely:— 1. (1) These rules may be called the Securities Contracts (Regulation) Amendment Rules, 2025. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Securities Contracts (Regulation) Rules, 1957, in rule 8, (i) in sub-rule (1), in clause (f), after the first proviso, the following proviso shall be inserted, namely:— "Provided further that investments made by a member shall, at all times, not be construed as business except when such investments involve client funds or client securities, or relate to arrangements which are in the nature of creating a financial liability on the broker.”; (ii) in sub-rule (3), after clause (f), after the first proviso, the following proviso shall be inserted, namely:— "Provided further that investments made by a member shall, at all times, not be construed as business except when such investments involve client funds or client securities, or relate to arrangements which are in the nature of creating a financial liability on the broker.". [F. No. 13/5/SM/2023] REETU JAIN, Economic Advisor Note: The principal rules were published in the Gazette of India, Part II, Section 3 vide number S.R.O. 576, dated the 21st February, 1957 and was last amended vide notification number G.S.R. 664 (E), dated the 27th June, 2017.

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