After issuance of Circular No.S.O.2561 dated 27-6-1969 under section 16 of Securities Contracts (Regulation) Act, 1956 transactions into securities by (i) Spot delivery contract; (ii) Contract for cash; (iii) Hand delivery and (iv) Special Delivery are only permitted

SUMMARY OF THE CASE LAWS

Where the contract note issued in relation to the transaction in question by the Stock Broker did not show that it was a spot delivery contract, the transaction was clearly contrary to the circular; consequently, in terms of the provisions of sub-section (2) of section 16 the transaction was illegal and was not capable of being enforced.

CASE LAWS DETAILS

DECIDED BY: SUPREME COURT OF INDIA,

IN THE CASE OF: Naresh K. Aggarwala & Co. Vs. Can Bank Financial Services Ltd.,  APPEAL NO: Civil Appeal No. 5173 of 2004, DECIDED ON May 5, 2010

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