(1) The State Government may by notification,—
(a) specify the place at which a silk exchange for the sale or purchase of silk yarn, shall be established;
(b) appoint for each silk exchange a Silk Market Officer;
(c) constitute a Silk Exchange Committee consisting of such number of representatives of reelers and traders as the State Government may think fit, with the Silk Market Officer as Chairman, for regulating generally the procedure for the conduct of business in the silk exchanges and for the performance of such functions as may be prescribed.
(2) All transactions involving the sale or purchase of silk yarn in a silk exchange shall be by open auction, the payment of price shall be in cash and the silk yarn shall be sold by metric weight.
(3) The members of the Silk Exchange Committee constituted under clause (c) of sub-section (1) shall hold office for a period of three years unless the Committee is reconstituted by the State Government earlier.