•section 4;
(g)“clearing corporation” means a person undertaking the activity of
•clearing and settlement of trades in securities, but does not include a system
•provider defined in the Payment and Settlement Systems Act, 2007.
Explanation.––For the purposes of this clause,––
(i)“clearing” means the process of transmitting, reconciling and to
•the extent applicable, confirming the payment obligations or transfers of
•securities prior to settlement; and
•(ii) “settlement” means the completion of delivery and payment of
•funds or securities or underlying of a derivative, to the relevant partie s
•in a contract in order to settle their obligations or to provide a title to the
•securities or underlying or both;
(h)“clearing member” means a person having clearing and settlement
•rights as specified in the bye-laws of a clearing corporation;
(i)“comm odity” means any kind of goods, including any activity,
•service, right, interest or event relating to or associated with such goods, as
•may be notified by the Central Government in consultation with the Board;
(j)“contract” means a contract for or relating to the purchase or sale of
•securities;
(k)“depository” means a person engaged in the activity of providing
•depository services, but shall not include a person providing depository
•services in relation to a Government security, a Registry or a ledger acc ount
•maintained by the Reserve Bank or its agent in accordance with the provisions
•of the Government Securities Act, 2006;
(l)“depository services” means any service relating to,—
(i)recording a transaction in securities or other regulated
•instrument, in cluding the allotment or transfer or transmission of
•ownership of such securities or other regulated instrument in
•dematerialised form in the record or register of a depository;
•(ii) distribution of any monetary or securities -based benefits
•associated with any securities or other regulated instrument;
•(iii) facilitating electronic voting and exercising any interest and
•rights associated with any securities or other regulated instrument; or
•(iv) such other services as may be specified by regulations;
•5
•10
•15
•20
•25
•30
•35
•40
•45
•51 of 2007.
•38 of 2006.
•3
•2 of 1934.
•38 of 2006.
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•10
•15
•20
•25
•30
•35
•40
(m)“derivative” includes,—
(i)a security derived from an underlying;
•(ii) a contract for the actual or intended delivery of the underlying
•on a future date and which is not a spot delivery contract;
•(iii) a contract that derives its value from prices or indices of prices
•or difference in prices of such underlying which may be settled with
•physical delivery of the underlying or by paying the difference in cash
•or equivalent;
•(iv) a contract which provides for a right, with or without any
•obligation for the actual delivery of the underlying on a future date;
(v)a contract or a swap agreement for exchange of cash flows or
•underlying in future;
•(vi) a contract which provides for exchange of one or more
•payments in future based on the value of the underlying;
•(vii) a derivative structured upon the same or a different kind of
•derivative;
•(viii) such other instruments as the Central Government may
•notify; and
•(ix) a combination of any contract or agreement specified in
•sub-clauses (i) to (viii),
•but shall not include derivative as defined in clause (a) of section 45U of the
•Reserve Bank of India Act, 1934 and such other instruments as the Central
•Government may notify in this regard;
(n)“Fund” means the Fund referred to in sub-section (1) of section 124;
(o)“goods” means any kind of movable property, other than actionable
•claims, money and securities;
(p)“Government security” shall have the same meaning as assigned to
•it in clause (f) of section 2 of the Government Securities Act, 2006;
(q)“intermediary” means,––
(i)an asset management company;
•(ii) a banker to an issue;
•(iii) a credit rating agency;
•(iv) a custodian;
(v)a debenture trustee;
•(vi) a depository participant;
•(vii) an index provider in relation to indices traded in the securities
•markets;
•(viii) an investment adviser;
•(ix) an investment manager;
(x)a Know Your Customer Registration Agency;
•(xi) a merchant banker;
•(xii) a portfolio manager;
•(xiii) a pooled investment vehicle;
•4
•(xiv) a registrar to an issue;
•(xv) a research analyst;
•(xvi) a share transfer agent;
•(xvii) a stock broker;
•(xviii) a trading member;
•(xix) a trustee of trust deed;
•(xx) an underwriter;
•(xxi) a vault manager; and
•(xxii) such other persons associated with the securities markets, as
•notified by the Board under sub-section (3) of section 34,
•but shall not include a person carrying out the activities of the nature
•mentioned in section 34 relating to instruments referred to in Chapter IIID of
•the Reserve Bank of India Act, 1934;
(r)“investment scheme” means the scheme referred to in section 32;
(s)“Investor Protection and Education Fund” means the fund referred to
•in section 125;
(t)“issuer” means any person who makes or proposes to make or has
•made an issue of securities which are listed or to be listed;
(u)“listing” means the admission of securities fo r trading on a stock
•exchange and the expression “listed” shall be construed accordingly;
(v)“market infrastructure institution” means a stock exchange, a
•clearing corporation or a depository and includes such other class or classes
•of market infrastructu re institutions, as may be notified by the Central
•Government, except those authorised or required to be authorised by other
•regulatory bodies;
(w)“market participant” means a person or its agent participating in the
•securities markets as an issuer or an investor.
Explanation.—For the purposes of this clause, an intermediary shall be
•deemed to be a market participant, if it participates in the securities markets
•as an investor or issuer;
(x)“member”, in relation to—
(i)a stock exchange or a clearing corp oration, means a trading
•member or a clearing member;
•(ii) a depository, means a depository participant; and
•(iii) any other market infrastructure institution notified under
