To prevent panics - Board empowered to close market

In pursuance of the Bombay Securities Contracts Control Act of 1925, the Government of Bombay published amendments made by the Native Share and Stock Brokers' Association to prevent panics or bear raids. Under proposed amendments to rule 188, the Board is empowered to close the securities market for more than two months with Government sanction. In a crisis, the Board may suspend all further dealings or extend the time for payment of securities to the next settlement. If a buyer fails to pay for securities on pay day, a 2 per cent penalty is imposed, while if a seller fails to give delivery, the buyer is entitled to buy-in without opening the market

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