law: Securities Contracts (Regulation) Act, 1956
  17.Licensing of
  
  dealers in securities in certain areas.-
  (1) Subject to the
  
  provisions of sub-section (3) and to the other provisions contained in this
  
  Act, no person shall carry on or purport to carry on, whether on his own behalf
  
  of any other person, the business if dealing securities in any State or area to
  
  which section 13 has not been declared to apply and to which the Central
  
  Government may, by notification in the Official Gazette, declare this section
  
  to apply, except under the authority of a licence granted by the Central
  
  Government in this behalf.
  (2) No notification
  
  under sub-section (1) shall be issued with respect to any State or area unless
  
  the Central Government is satisfied, having regard to the manner in which
  
  securities are being dealt with in such State or area, that it is desirable or
  
  expedient in the interest of the trade or in the public interest that such
  
  dealings should be regulated by a system of licensing.
  (3) The restrictions
  
  imposed by sub-section (1) in relation to dealing in securities shall not apply
  
  to the doing of anything by or behalf of a member of any recognised stock
  
  exchange.