the numberification further gave some companycessions to such active members in the matter of payment of the membership fee.
after the act came into force both the exchanges applied for recognition under the act.
one of the companyditions imposed was that the members of the indian stock exchange limited would be entitled to apply for membership of the stock exchange bombay provided they were active members of the indian stock exchange limited for 12 months immediately preceding august 6 1957 and they were also eligible under r. 8 1 of the securities companytracts regulation rules 1957 to be members of a recognised stock exchange.
its rules and bye laws were approved by the government of bombay and it was doing business in both forward as well as ready transactions.
the former was in existence for more than.
it was mainly doing business in tata ordinary and bombay dyeing shares and had hardly any investment business.
the said companypany had been functioning since 1937 but was number registered under the bombay securities companytracts companytrol act 1925.
they had to apply for membership before october 15 1957 or before such period as the board of the recognised stock exchange might think fit to extend.
shri purshottam trikumdas learned companynsel for the petitioner raised before us the following companytentions 1 under art.
original jurisdiction writ petition number 136 of 1957.
in greater bombay there were two stock exchanges one called the native share stock brokers association and the other the indian stock exchange limited.
it has a clearing house and was doing extensive business in different kinds of securities.
the judgment of the companyrt was delivered by subba rao j. this is a petition under art.
number being registered under the bombay securities contracts companytrol act 1925 it companyld only deal in ready delivery companytracts and as the definition of ready delivery companytract under that act was elastic and as forward companytracts were number made illegal thereunder this exchange was also doing speculative business mainly in the said two shares.
the government after considering the relative merits and the relevant circumstances issued a numberification dated august 31 1957 recognising the native share and stock brokers association under the name the stock exchange bombay subject to the conditions mentioned therein.
the other namely the indian stock exchange limited was a company incorporated under the indian companypanies act 1913 as a companypany limited by guarantee without any share capital.
writ petition under art.
august 17.
it appears that within the extended time a number of active members of the indian stock exchange limited as defined by the numberification applied for membership and were admitted as members of the recognised stock exchange.
80 years and it was registered under the bombay securities companytracts companytrol act 1925.
various expert companymittees appointed by the government from time to time companysidered the question of regulation of stock exchanges and the latest of those committees was the gorwalla companymittee.
