(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 or on behalf of any other person, the business of dealing in 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 1[licence granted by the Securities and Exchange Board of India] 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 dealings in securities shall not apply to the doing of anything by or on behalf of a member of any recognised stock exchange.
1. Subs. by Act 15 of 1992, s. 33 and the Schedule, for "licence granted by the Central Government " (w.e.f 30-1-1992)
(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 dealings in securities shall not apply to the doing of anything by or on behalf of a member of any recognised stock exchange.
1. Subs. by Act 15 of 1992, s. 33 and the Schedule, for "licence granted by the Central Government " (w.e.f 30-1-1992)