Question

Definition of stock exchange in securities contract regulation act

Answer 1

The Securities Contracts (Regulation)Act, 1956 also known as SCRA is anAct of the Parliament of India enacted to prevent undesirable exchanges in securities and to control the working of stock exchange in India.

Answer 2

stock exchange

Organized and regulated financial marketwhere securities (bonds, notes, shares) are bought and sold at prices governed by the forces of demand and supply. Stock exchanges basically serve as (1) primary markets where corporations, governments, municipalities, and other incorporated bodies can raise capital by channelingsavings of the investors into productive ventures; and (2) secondary markets where investors can sell their securities to other investors for cash, thus reducing the risk of investment and maintaining liquidity in the system. Stock exchanges impose stringent rules, listing requirements, and statutory requirements that are binding on all listedand trading parties.