The Securities Contracts (Regulation) Act, 1956Central Act · Act 42 of 1956
[18A. Contracts in derivatives.--Notwithstanding anything contained in any other law for the lime being in force, contracts in derivative shall be legal and valid if such contracts are--
(a) traded on a recognised stock exchange;
(b) settled on the clearing house of the recognised [stock exchange; or] in accordance with the rules and bye-laws of such stock exchange.]
[(c) between such parties and on such terms as the Central Government may, by notification in the Official Gazette, specify.]