law: Securities Contracts (Regulation) Act, 1956
  9.Power of recognised
  
  stock exchanges to make bye-laws.-
  (1) Any recognised
  
  stock exchange may, subject to the previous approval of the Central Government,
  
  make bye-laws for the regulation and control of contracts.
  (2) In particular ,
  
  and without prejudice to the generality of the foregoing power, such bye-laws
  
  may provide for-
  (a)
  
  the opening and closing of markets and the regulation of the hours of trade;
  (b)
  
  a clearing house for the periodical settlement of contracts and differences
  
  thereunder, the delivery of and payment for securities, the passing on of
  
  delivery orders and the regulation and maintenance of such clearing house;
  (c)
  
  the submission to the Central Government by the clearing house as soon as may
  
  be after each periodical settlement of all or any of the following particulars
  
  as the Central Government may, from time to time, require, namely;-
  (i)
  
  the total number of each category of security carried over from one settlement
  
  period to another;
  (ii)
  
  the total number of each category of security, contracts in respect of which
  
  have been squared up during the course of each settlement period;
  (iii)
  
  the total number of each category of security actually delivered at each
  
  clearing;
  (d)
  
  the publication by the clearing house of all or any of the particulars
  
  submitted to the Central Government under clause (c) subject to the directions,
  
  if any, issued by the Central Government in this behalf;
  (e)
  
  the regulation or prohibition of blank transfers;
  (f)
  
  the number and classes of contracts in respect of which settlements shall be
  
  made or differences paid through the clearing house;
  (g)
  
  the regulation, or prohibition of bundles or carry-over facilities;
  (h)
  
  the fixing, altering or postponing of days for settlements;
  (i)
  
  the determination and declaration of market rates, including the opening,
  
  closing, highest and lowest rates for securities;
  (j)
  
  the terms, conditions and incidents of contracts, including the prescription of
  
  margin requirements, if any, and conditions relating thereto, and the forms of
  
  contracts in writing;
  (k)
  
  the regulation of the entering into, making, performance, rescission and
  
  termination, of contracts, including contracts between members or between a
  
  member and his constituent or between a member and a person who is not a
  
  member, and the consequences of default or insolvency on the part of a seller
  
  or buyer or intermediary, the consequences of a breach or omission by a seller
  
  or buyer, and the responsibility of members who are not parties to such
  
  contracts;
  (l)
  
  the regulation of taravani business including the placing of limitations
  
  thereon;
  
  
  (m) the listing of securities on the stock exchange, the inclusion of any
  
  security for the purpose of dealings and the suspension or withdrawal of any
  
  such securities, and the suspension or prohibition of trading in any specified
  
  securities;
  (n)
  
  the method and procedure for the settlement of claims or disputes, including
  
  settlement by arbitration;
  (o)
  
  the levy and recovery of fees, fines and penalties;
  (p)
  
  the regulation of the course of business between parties to contracts in any
  
  capacity;
  (q)
  
  the fixing of a scale of brokerage and other chargers;
  (r)
  
  the making, comparing, settling and closing of bargains;
  (s)
  
  the emergencies in trade which may arise, whether as a result of pool or
  
  syndicated operations or cornering or otherwise, and the exercise of powers in
  
  such emergencies, including the power to fix maximum and minimum prices for
  
  securities;
  (t)
  
  the regulation of dealings by members for their own account;
  (u)
  
  the separation of the functions of the jobbers and brokers;
  (v)
  
  the limitations on the volume of trade done by any individual member in
  
  exceptional circumstances;
  (w)
  
  the obligation of members to supply such information or explanation and to
  
  produce such documents relating to the business as the governing body may
  
  require.
  (3) The bye-laws made
  
  under this section may-
  (a)
  
  specify the bye-laws the contravention of which shall make a contract entered
  
  into otherwise than in accordance with the bye-laws void under sub-section (1)
  
  of section 14;
  (b)
  
  provide that the contravention of any of the bye-laws shall render the member
  
  concerned liable to one or more of the following punishments, namely:-
  (i)
  
  fine;
  (ii)
  
  expulsion from membership;
  (iii)
  
  suspension from membership for a specified period;
  (iv)
  
  any other penalty of a like nature not involving the payment of money.
  (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 stock exchange is
  
  situate, and shall have effect as from the date of its publication in the
  
  Gazette of India;
  Provided that if the Central Government is satisfied in any case that in the interest
  
  of the trade or in the public interest any bye-law should be made immediately,
  
  it may, by order in writing specifying the reasons therefor, dispense with the
  
  condition of previous publication.
  
  
  
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  (ii)
  
  expulsion from membership;
  (iii)
  
  suspension from membership for a specified period;
  (iv)
  
  any other penalty of a like nature not involving the payment of money.
  (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 stock exchange is
  
  situate, and shall have effect as from the date of its publication in the
  
  Gazette of India;
  Provided that if the Central Government is satisfied in any case that in the interest
  
  of the trade or in the public interest any bye-law should be made immediately,
  
  it may, by order in writing specifying the reasons therefor, dispense with the
  
  condition of previous publication.