 the forward contracts (regulation) amendment bill, 1960(as introduced in laic sabha on 18m: november, 1960)  amendment bill, 1960 (as introduciid in lok sabila)a bill further to amend the forward contracts (regulation) act, 1952 be it enacted by parliament in the eleven~h year the repubuc of india as fouows:-1 this act may be called the forward contracts (regulation) short dtle amendment act, 1960 s 2 in sub-section (2) of section 1 of the forward contra,~ts (ltegu- ameddmaat 7" of 19sa lation) act, 1952 (hereinafter referred to as the principal act), the of aectiojl i words "except the state of jammu mad kashmir" sballlo>e omktad 3 in section 2 of the principal act,-ameaf_t-' (a) for clause (j), the followine clauses shall be substituted, o _uuda 10 -nari)ely: - - (j) "recognised association" means an associatiod to which recognition for the time being has been granted by the central government under section 6 in respect of goods or classes of goods specified in such recognition; is (jj) "ragistered as8ociation" means an association to which for the time being a certificate of registratiod has been granted by the commission under section 1~;'; (b) to clause (n) the words "and which is subject to such conditions relating to its transferabiuty as the central government may, by notification in the official gazette, specify in this behalf" &ball be added at the edd , in sub-section (2) of section 3 of the principal act,-(a) for the words "hut not exceeding three", the words "but not exceedink four" shall be substituted; (b) for the proviso, the following proviso shall be substituted, namely:-s "provided that the members to be so appointed shall be persons of ability, integrity and standing who have shown capacity in dealing with problems relating to commerce or commodity markets, or in administration or who have special knowledge or practical experience in any matter which ren- 10 del's them suitable for appointment on the commission" 5 in section 4 of the principal act,-(a) for clause (b), the following chause shall be substituted, namely:-"(b) to keep forward markets under observation and to is take such action in relation to them as it may consider necessary, in exercise of the powers assigned to it by or under this act;"; (b) in clause (e), for the words "any recognised association", the words "any recognised association or registered associa- 20 tion or any member of such association" shall be substitulted imerdon of 8 in chapter ii of the principal act, after section 4, the following ~ eecdod section shall be inserted, namely:-"4a (1) the commission shall, in the performance of its functions, have all the powers of a civil court under the code of 3s civil procedure, 1908, while trying a suit in respect of the follow-5 of 1908 ing matters, namely:-(a) summoning and enforcing the attendance of any person and examining him on oath; ('b) requiring the discovery and production of any doeu- 30 ment; (c) receiving evidence on affidavits; (d) requisitioning any public record or copy thereof from any office; (e) any other matter which may be preacribed 35 4' of 1860 10  5 of 1860 0 5 of 1898 is (2) the commission shall have the power to require any person, subject to any privilege which may be claimed by that person'under any law for the time being in force, to furnish information on such points or matters as, in the opinion of the commission, may be useful for or relevant to, any matter under the consideration of the commission and any person so required shall be deemed to be legally bound to furnish such information within the meaning of section 176 of the indian penal code (3) the commission shall be deemed to be a civil court and when any offence described in section 175, section 178, section 179, section 180 or section 228 of the indian penal code is committed in the view or presence of the commission, the commission may, after recording the facts constituting the offence and the statement of the accused as provided for iil the code of criminal procedure, 1898, forward the case to a magistrate having jurisdiction to try the same and the magistrate to whom any such case is forwarded shall proceed to hear the complaint against the accused as if the case had been forwarded to him under section 482 of the said code (4) any proceeding before the commission shall be- deemed to be a judicial proceeding within the meaning of sectiens 193 and 228 of the indian penal code 4' of 1860 explanation-for the purposes of enforcing the attendance of witnesses, the local limits of the commission's jurisdiction 2s shall be the limits of the territory of india" 7 in section 8 of the principal act,-, (a) for sub-section (1), the following substituted, namely:-sub-section soon be  o"(1) every recognised association and every member thereof shall furnish to the central government such periodical returns relating to its affairs, or the affairs of its members, or his affairs, as the case may be, as may be prescribed"; (b) in clause (a) of sub-section (2), after the words "recognised association", the words "or a member theri~of" and 35 after the words "any of its members", the words "or his airairs, as the case may be," shall be inserted; (c) after sub-section (3), the following sub~ection shall be inserted, namely:-" (4) every recognised association arid every member thereof shall maintain such books of account and other docunaentsas tl1e commission may specify ancl tm books of aeoount and <other documents 80 spectfted shah be preerved for filer period not exceeding three years as the commission may 'ipecify andhanbe subject to inspection at 8ll reason-able times by the commission" s a  'iilent  i'~ trl~tion {1) ·of l8ctiol'l 9 ·of the principal aat, tile folofllcdod 90 10widinb-aectiqd shall he aubstituted, namely:-•• (1) every recognised association shall furnish to the commission three copies of its annual report" amezadmlllt 9 1n section 9a of the principal act-of i8ctiod 9a 10 {c&) in iub-eectjon (%)-m clauses ~a) (q)~ (c) (d) and (e) shall be re-iettered as cl~ujes (b), (c), (d), (e) and (g) respectivelj ·add befol'e clause (b) as so re-lettered, the following clauae shall be, and shall be deemed always to have been, inserted, is namely:-"(4) the admdaion of - firm or a hindu undivided family as a member;"; (ft) after dallle (e) as 80 re-lettered, the following clause shad be insert~ namely: _ 20 ii (f) the retirement at every annual general meeting of all directors or such n1lllnber or proportion of their total number as may be ~uied in the rules;"; (iii) in clause (g) as so re-iettered, for the expression "clauses (a), (b), (e) and (d)", the expres$~ "clauses (a) ~s to (f)" shall be substituted: (~) 1ft lub-seetion (2), for the ~ession "clauses (a) to (~", the expression "clauses (a) to (g) if shall be substituted j (~) idlu~ion (3), tor the exprelj8iol'l "cla·uses (a) to (e)", tae expr_on uclausel (rb) to (e) and (g)" shall be sub- 30 iiitvtecl amiddmeat 10 for su'b-section (3) of section 10 of the principal act, the folof __ jop lowing sub-aeet1oft shall be substituted, namely:-•• (3) where, in pursuance of sub-section (2), any rules have been d\de or amencled, the njlft 50 made or amended shall be 3s p~ ~ tlw atte of ld«h  ehau, t:bmwpon, have e8iet aotlwwutancune anytjajpj ~ the cod~  aid  in the companies act, l966, or any other iaw lor tae· ume beida in farce, a if they had been made or ended by the ~ ass0-ciation coneerbfli" 11 in sectioh 11 of the priacipal aat-~ ohecdoa ii (iii)' in lub-secticm (j), after clawle (a) tbe followidl lause shall be inserted, namely:-10 "('ua) peclfy the bye-l&wb the contravention of any of which shall make a forward contract entered into otherwise than b1 accordance with the bye-laws illegal uncfer subsection (3a) of section 15;";  c)(b) in sub-section (4), the words "and also in the ofticial gazette of the state in which the principal office of the recognised association is situate" shall be omitted is 20 li2 in section 12 of the principal act-,--aujmdnumt of mctiod 13 ( a) in sub-section (2), for the words "and, also in t1ie official gazette of the state in which the principal oftlce of the recognised association is situate, and on the publication thereof in the gazette of india the bye-lam so made or amended shall have effect", the words "and shall thereupon have effect" shall be substituted; (b) in sub-section (4), for the words "subject to the condition of previous publication", tbe words "subject to such conditions in reaard to previous publication as may be- pr'escribed" shall be substituted \  f) "',~3s 13 mter section 12 of the principal act the following sections riuerdod 'of shall be inserted, namely: -new ~ iza_l  "12a any amendment of a bye-law under section 11 other adduc:atiod than an amendment made in pursuance of clause (4) or clause o( ~ (aa) of sub-section (3) of that section or under section 12 shall =t~e:r: also apply to au forward contracts entered into befoft the date =r=:-nt of itlapproval by the central government or before the date of  iu pu~licatton in the gazette of finffa, as the case may be, and  remaining to be performed on or after the said date 12b (i) if, in the interest of trade or in the public: mterest, power~ the commission considers it necessary to suspend a member ;o:~~ from his membership of any recognised association or to prohibit member of lu'eh member from entering into any forward contract for the ==== or to problbit btid fioiii 1ftdidi 'sale or purchase in his own name or through another member of a recognised asscoiation of any goods or class of goods, then, notwithstanding anything contained in any law for the time being in force or in the rules or bye-laws of a recognised association, the commission may, after giving an opportunity to the member s concerned of being heard, by order suspend his membership of any association or prohibit him from entering into any such contract (2) an order made under sub-section (1) shall specify the period for which the suspension or prohibition is to have eftect, 10 but no such order shall be in force for more than three years in the aggregate (3) no order made under sub-section (1) in respect of any member of a recognised association shall affect the validity of any forward contract entered into or made by, with or through 15 such member on or before the date of such order and remaining to be performed on or after the said date; but the commission may make such provision as it deems fit in such order or in any subsequent order for the closing out of any such forward contract" 20 idaerdon of 14 after chapter iii of the principal act, the following chapter wi a~pter shall be inserted, namely: -,  "chapter ilia registered associationscerdlcate of reliatration to be obtained by au ••• odatiodi 14a (1) no association concerned with the regulation and 25 control of busijless relating to forward contracts shall, after the commencement of the forward contracts (regulation) amendment act, 1960 (hereinafter referred to as such commencement), carryon such business except under, and in accordance with, the conditions of a certificate of registmtion granted under this act 30 by the commission (2) every association referred to in sub-section (1) which is in existence at such commencement, before the expiry of six months from such commencement, and every association referred to in sub-section (1) which is not in existence at such commtlnce- 35 ment, before commencing such business, shall make an application for a certificate of registration to the commission in such form and containing such particulars as may be prescribed: provided that the commission may in its discretion extend from time to time the period of siv months aforesaid up to one year in the aggregate 40 (3) nothing in this section shall be deemed-(a) to prohibit an association in existence at such commencement from carrying on its business", until the disposal of the application made by it under sub-section (2); or s 10 (b) to require a recognised association in existence at such commencement to make an application under subsection (2); and every such association shall, as soon as may be after such commencement, be granted free of cost by the commission a certificate of registration () 14b on receipt of an application under section 14a, the ~tlorf  "d reusa 0 commission, after making such enquiry as it consi ers necessary certificate of in this behalf, may by order in writing grant a cer~ificate of reaistratiod registration or refuse to grant it: is provided that before refusing to grant such certificate, the association shall be given an opportunity of being heard in the matter 20 14c the provisions of sections 8 and 12b shall apply in appl~tiod i t· t  t  t· th i' i t' t of sections 8 re a ion 0 a regis ered assocla lon as ey app y m re a ion 0 a and 12b to il'ecognised association with the substitution ofreais~~ a88oclatiou (i) references to the registered association, for references to the recognised association; and (ii) the words "not exceeding two years", for the words "not exceeding three years" in section 12b" o 's 15 after sub-section (3) of section 15 of the principal act, the amen~ment following sub-section shall be inserted, namely:-ofaec:uoq i, "(3a) any forward contract in goods entered into in pursuance, of sub-section (1) which at the date of the contract is in contravention of any of the bye-laws specified in this behalf 30 under clause (aa)of sub-section (3) of section 11 shall be illegal  16 in clause (a) of section 16 and sub-section (3) of section 17 amen4ment of the ~tinc~pa!, act, for the words "entered into before the date of ~~ =~l~~~ the nobficabon , the words "entered into on or before the date of 35 the notification" shall be substituted 17 for section 20 of the principal act, the following section shall be substituted, namely:-peu1tica "20 any person who-(a) (i) in any return, statement or other document required by or under this act, makes a statement which is s false in any material particular, knowing it to be false, or wilfully omits to make a material statement; or (ii) without reasonable excuse (the burden of proving which shall be on him) fails to furnish any return, statement or other document or any information or to answer any ques- 10 tion or to comply with any requisition made under this act or any rules made thereunder; or  (iii) enters into any forward contract during the period of suspension of business of a recognised association in pursuance of a notification under section 14; or is (b) is a member of any association, other than a recognised association, to which a certificate of registration has not been granted under this act; or (c) publishes or circulates information relating to the rate at which any forward contract has been entered into 20 in contravention of any of the bye-laws of a recognised association; or (d) organises, or assists in organising, or is a member of, any association in contravention of the provisions contained in the proviso to sub-section (1) of section 18; or 25 (e) enters into any forward contract or any option in goods in contravention of any of the provisions contained in sub-section (1) or sub-seotion (3a) or sub-section (4) of section 15, section 17 or section 19, shall, on conviction, be punishable-30 (i) for a first offence, with imprisonment which may extend to one year, or with a fine of not less than one thousand :rupees, or with both; (ii) for a second or subsequent offence under clause (d), or under clause· (e) [other than an offence in respect of a 35 contravention of the provisions of sub-section (4) of section 15], with imprisonment which may extend to one year and also with fine: provided that in the absence of special reasons to the contrary to be mentioned in the judgment of the court, the imprisonment shall be not less than one month and the fine shall be not less than one thousand rupees" 18 in section 21 of the principal act,-5 amendmedi of eectioa zr (a) to clause (g), the word "or" shall be added; (b) after clause (g), the following clause shall be inserted, namely:-"(h) manipulates or attempts to manipulate prices in respect of forward contra~ts for the sale or purchase of any goods specified in any notification under section 15, in any area specified in that notification,"; (c) for the words "shall, on conviction, be punishable with imprisonment which may extend to two years, or with 15 fine, or with both", the following shall be substituted, namely:-"shall, on conviction, be punishable-(i) for a first offence, with imprisonment which may extend to two years, or with a fine of not less than one thousand rupees, or with both; 20 (ii) for a second or subsequent offence, with imprisonment which may extend to two years and also with fine: provided that in the absence of special and adequate reasons to the contrary to be mentioned in the judgment of the court, the imprisonment shall be not less than one month and the fine shall be not lees than one thousand rupees" ,0 19 after section 21 of the principal act the following section ldierdon of , new eet ion shall be inserted, namely:-2ia "21a any court trying an offence punishable under sec- power of tion 20 or section 21 may, if it thinks fit and in addition to any:u~ :rceisentence which it may impose for such offence, direct that any ture of money, goods or other property in respect of which the o1fence property has been committed, shall be forfeited to the central government 3s explanation-for the purposes of this section, property in respect of which an offence has been committed, shall include deposits in a bank where the said property is converted into such deposits" inaertio~ of 20 after section 22 of the principal act, the following sections ~=::b shall be inserted, namely:-  power to search and leize books of account or othcrdocu-~ta' "22a (1) any presidency magistrate or a magistrate of the first class may, by warrant, authorise any police officer not below the rank of sub-inspector to enter upon and search any s place where books of account or other documents relating to forward contracts or options in goods entered into in contravention of the provisions of this act, may be or may be reasonably suspected to be, and such police officer may seize any such book or document, if in his opinion, it relates to any such 10 forward contract or option in goods (2) the provisions of the code of criminal procedure, 1898, shall, so far as may be, apply to any search or seizure made under sub-section (1) as they apply to any search or seizure made under the authority of a warrant issued under is section 98 of the said code presumptions to be drawu in cert&id easel 22b (1) where any books of account oil" other documents are seized from any place and there are entries therein making reference to quantity, quotations, rates, months of delivery, receipt or payment of differences or sale or purchase of goods 20 or option in goods, such books of account or other documents shall be admitted in evidence without witnesses having to appear to prove the same; and such entries shall be prima jacie evidence of the matters, transactions and accounts purported to be therein recorded 2s (2) in any trial for an offence punishable under section 21, it shall be presumed, until the contrary is proved, that the place in which the books of account or other documents referred to in sub-section (1) were seized, was used, and that the persons found therein were present, for the purpose of com- 30 mitting the said offence it ldsertfoll of 21 after section 27 of the principal act, the following section dew sectloll 27a'·  shall be inserted, namely:-protect!c,q of action taken fagoed faith "27a (1) no suit or other legal proceeding shall lie in any court against the central government or any member, officer 3s or servant of the commission for anything which is in good faith done or intended to be done under this act, or any rule or bye-law made thereunder (2) no suit or other legal proceeding shall lie in any court against the governing body or any member, office-bearer or 40 servant of any recognised association or against any person appointed under sub-section (1) of section 13 for anything which is in good faith done or intended to be done with the approval, or at the instance, of the commission and in pursuance of this act, or of any rule or bye-law made there-5 under" 22 after clause (c) of sub-section (2) of section 28 of the prin- ame~ldci1t :ipal act, the following clause shall be inserted, namely: _ ofaechon 28 "(cc) the manner in which applications for certificates of registration may be made under section 14a and the levy of 10 fees in respect of such applicationsj"  statement of objects and reasonsexperience gained in the administration of the forward cod-tracts (regulation) act, 1952 during the last 6 years has revealed that the present provisions of the act are not adequate to deal with excessive speculation and other malpractices now prevalent in some of the forward markets 'persons indulging in illegal forward trading canhot be prosecuted for want of adequate documentary evidence further, persons found guilty of violation of the provisions of the act often get away with a light punishment trading outside official hours in associations recognised for forward trading cannot be stopped under the existing provisions of the act the object of the bill is to remove these and other difficulties which have been experienced in the working of the act and to enable the centrol government and the forward markets commission to exercise a stricter control over forward trading activities opportunity is being taken to extend the provisions of the act to the state of jammu and kashmir 2 the notes on clauses explain the important provisions of the bill nityanand kanungo new delhi; the 6th september, 1960 clause 3 (b)-this clause enables the central government to impose conditions regarding the transferability of specific delivery contracts one of the objects of conferring this power on the central government is to limit the nwnber of transfers in the case of such contracts clause 6-the forward markets commission is being invested with certain powers of a civil court, such as, summoning and examining persons on oath, etc, on the lines of similar powers conferred on the tariff commission under the tariff commission act, 1951 clause 9-this clause makes an express provision for the admission of a firm or a joint hindu family as a member of a recognised association under the companies act, 1956, a firm not being a legal person is debarred from becoming a member of a company registered  under that act and since firms constitute the bulk of membership of recognised associations, provision for admission of a firm or a joint hindu family as a member of such associations is deemed necessary clauses 11 and is-these amendments will enable a recognised association to make certain kinds of transactions entered into in contravention of its bye-laws illegal, such as, kerb trading clause 13-this clause provides that an amendment made to a byelaw even during the currency of a contract shall apply to subsisting contracts it also empowers the forward markets commission to suspend any member of a recognised association clause 14-all associations are required to get themselves registered with the forward markets commission the registration of associations will enable the commission to have g census of all associations that are now trading in transferable specific delivery contracts in free commodities as well as non-transferable specific delivery contracts in regulated or prohibited commodities, end to ascertain the extent to which such associations misuse the non-transferable specific delivery contracts for speculative purposes clauses 17, 18 and 19-a minimum penalty of a fine of rs 1,000 is being prescribed for any offence under the act and a compulsory sentence of imprisonment is proposed for a second or a subsequent offence of iel serious nature in addition, the court has been empowered to forfeit any illegal gain or property acquired by trading in contravention of the provisions of the act clause 20--this amendment authorises police officers not below the rank of sub-inspector to enter and search any place and seize documents in pursuance of a warrant issued by a presidency or a first class magistrate any books of account or other documents seized in exercise of this power shall be prima facie evidence of the transactions recorded therein the forward contracts (regulation) amendment bill, 1969 contemplates registration of associations and tightening up of the enforcement provisions this is likely to involve some increale in the work load of the forward markets comm'ssion, which might necessitate the strengthening of the commission by awointment of a fourth member and some additional staff, the cost of which is estimated at about rs 50,000' 00 per annum  memorandum regarding delegated legislationclause 22 enlarges the rule-making power of the central government and empowers it to make rules regm-ding the manner in which applications for certificates of registration may be made under section 14a and the levy of fees in respect of such applications provisions for these matters are generally made in rules the delegation of power is of 6 normal character - - - - short title, 1 extent add coidjdel1cc-ment - - - - (2) it extends to the whole of india except the state of jammu and kashmir - - - - ddlnitioql 2 - - - - (j) "recognised association" means an association which is for the time being recognised by the central government under section 6; - - - - (n) "transferable specific delivery contract" means a specl1ic delivery contract which is not a non-transferable specific delivery contract - - - - 3 - - - - establishment and ( , \ constitutiod " of the forward markets coidd1issiod (2) the commission shall consist of not less than two, but not exceeding three, members appointed by the central government one of them being nominated by the central government to be the chairman thereof; and the chairman and the other member or members shall be either whole-time or part-time as the central government may direct: provided that one of the members to be so appointed shall be a person having knowledge of forward markets in india - - - - functions of the coduqi  lion 4 the functions of the commission shall be-- - - - ('b) to keep forward markets under observation and to draw the attention of the central government or of any other prescribed authority to any development taking place in, or in relation to, such markets which, in the opinion of the commission, is of sufficient importance to deserve the attention of the central government and to make recommendations thereon; - - - - (e) to undertake the inspection of the accounts and other documents of any recognised association whenever it considers it necessary; and - - - - 8 (1) every recognised association shall furnish to the central ~o~ government such periodical returns relating to its affairs or the vernment to affairs of its members as may be prescribed  calli periodi-, ca re-turns or (2) without prejudice to the provisions contained in ub-section ~i~~~ :qui-(1), where the central government considers it expedient so to do, made it may, by order in writing,-(a) call upon a recognised association to furnish in writing s\lch information or explanation relating to its affairs or the affairs of any of its members as the central government may require, or - - - - 9 (1) every recognised association shall furnish to the government a copy of its annual report - - - - central furnishina of annual reports to the cenual governnaeat ~ r~d aslocutiolts 9a (1) a recognised association may make rules or amend any power ef rules made by it to provide for all or any of the following matters, reco~t'~ed aslocla ion namely:-to make rules ·    ~~ 8r~~of (e) such incidental, consequential and supplementary mat- m  ters as may be necessary to give effect to any of the matters :~~ta, specified in clauses (a), (b), (c) end (tl) etc, in spedal casel (2) no rules of a recognised association made or amended in :relation to any matter refenred to in clauses (a) to (e) of sub-section (1) shall have effect until they have been approved by the central government and published by that government in the omela1 gazette and, in approving the rules so made or amended, the central government may make such modifications therein as it thinks fit, and on such publication, the rules as approved by the central government shall be deemed to have been validly made, notwithstanding anything to the contrary contained in the companies act, 1956 i of 1956 power of centraqgoyernment to direct rules to be made or to make rules (3) where, before the commencement of the forward contracts (regulation) amendment act, 1957, any rules have been made or 32 of 1957· amended in relation to any matter referred to in clauses (a) to (e) of sub-section (1), the rules so made or amended shall not be deemed to be invalid or ever to have been invalid merely by reason of the fact that the rules so made or amended are repugnant tc> any of the provisions of the companies act, 1956 1 of 1956 10 - - - - (3) where, in pursuance of sub-section (2), any rules have been made or amended, the rules so made or amended shall be published in the gazette of india and also in the official gazette of the state in which the principal office of the recognised association is situate, and on the publication thereof in the gazette of india, the rules so made or amended, shall, notwithstanding anything to the contrary contained in the indian companies act, 1913, or any other law for the 7 of 1913 time being in force, have effect as if they had been made or amended by the recognised association concerned  11 power of fticosniied usoclation to mau tj,e- (1 1s1'll(4) any bye-laws made under this section shall be subject to such conditions in regard to previous publication as may be prescribed, and when approved by the central government, shall be published in the gazette of india and also in the official gazette of the state in which the principal office of the recognised association is situate: provided that the central government may, in the interest of the uade or in the public interest, by order in writing, di9pense with the c:ondition of previous publication, in any case 12 - - - - - power of central cjo (2) where, in pursuance of this section, any bye-laws have been:u~ to made or amended, the bye-laws so made or amended shall be publish- ~b~ ed in the gazette of india and also in the official gazette of the state co-:;uc:erin which the principal office of the recognised association is situate, aaaociationa and on the publication thereof in the gazette of india the bye-laws so made or amended shall have effect as if they had been made or amended by the recognised association - - - (4) the making or the amendment or revision of any bye-laws under this section shall be in all cases be subject to the condition of previous publication: provided that the central government may, in the interest of the trade or in the public interest, by order in writing, dispense with the condition of previous publication 16 (a) every forward contract for the sale or purchase of any goods specified in the notification, entered into before the date of the notification and remaining to be performed after the said date and which is not in conformity with the provisions of section 15, shall be deemed to be closed out at such rate as the central government may fix in this behalf, and different rates may be fixed for different classes of such contracts; 17 (3) where a notification has been issued under sub-section (1), the provisions of section 16 shall, in the absence· of anything to the contrary in the notification, apply to all forward contracts for the sale or purchase of any goods specified in the notification entered into before the date of the notification and remaining to be performed after the said date as they apply to all forward contracts for the sale or purchase of any goods specified in the notification under section 15 - - - - - - 20 (1) any person who-penalty for contravention of certain provisions of chapter iv (a) without reasonable excuse (the burden of proving which shall be on him) fails to comply with any requisition made under sub-section (3) of section 8; or (b) organises, or assists in organising, or is a member of, any association in contravention of the provisions contained in the proviso to sub-section (1) of section 18; or (c) enters into any forward contract or any option in goods in contravention of any of the provisions contained in subsection (1) of section 15, section 17 or section 19 shall, on conviction, be punishable with imprisonment for a term which may extend to one year, or with fine, or with both (2) any person who enters into any forward contract in contravention of the provisions contained in sub-section (4) of section 15 shall, on conviction, be punishable with fine 21 any person who-- - - - - - penalty for owning or keeping place used may ~~e:=d shall, on conviction, be punishable with imprisonment which contracts in extend to two years, or with fine or with both soodl - - - - - - a bill further to amend the forward contracts (regulation) act, 1952 the president has, in pursuance of clause (3) of article 117 of the const itution of india, recommended tq lok sabha the consideration of the bill m ~ kt\ul, secretary (shri nityanand kanungo, minister of commerce) 