Put/Call Option in Shares of Listed Company not legal-Read
File details
File description
While issuing informal guidance sought on behalf of Vulcan Engineers Limited (VEL) wherein two foreign parties proposed to enter into share purchase transaction in relation to shares of VEL through put/call option, Indian Stock Market regulator SEBI expressed following views:
a) That since put/call option are exercisable at the future dates, they would not qualify as spot delivery contract as defined under section 2(i) of the SCRA.
b) Further they will not be qualified as legal and valid derivative contract in terms of Section 18A of the SCRA as it is exclusively entered between two parties and is not a contract traded on stock exchanges and settled on the clearing house of the Recognized Stock Exchange.
#pdf
Comments
Recent Files in Corporate Law
View more →Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
Popular Files
- RBI Bulletin - August 2026
- Performance of Private Corporate Business Sector during Q1:2026-27
- Monthly Economic Review - July 2026
- 5 Years of e-Shram Portal
- ICAI Members' Journal - September 2026
- ICAI Students' Journal - September 2026
- ICAI Students' Journal - August 2026
- RTPs for CA Final Nov 2026 Exams
- PAN Card Correction Form For Non-Individual
- User Manual of UDIN Portal for ICAI DigiCA Platform
CAclubindia
