law: Securities Contracts (Regulation) Act, 1956
  15.Members may not act
  
  as principals in certain circumstances.-
  No member of a
  
  recognised stock exchange shall in respect of any securities enter into any
  
  contract as a principal with any person other than a member of a recognised stock
  
  exchange, unless he has secured the consent or authority of such person and
  
  discloses in the note, memorandum or agreement of sale or purchase that he is
  
  acting as a principal;
  Provided that where the member has secured the consent or authority of such
  
  person otherwise than in writing he shall secure written confirmation by such
  
  persons of such consent or authority within three days from the date of the
  
  contract;
  Provided further that no such written consent or authority of such person shall
  
  be necessary for closing out any outstanding contract entered into by such
  
  person in accordance with the bye-laws, if the member discloses in the note,
  
  memorandum or agreement of sale or purchase in respect of such closing that he
  
  is acting as a principal.