13. Contracts in notified areas illegal in certain circumstances .- If the Central Government is satisfied, having regard to the nature or the volume of transactions in securities in any *[State or States or area], that it is necessary so to do, it may, by notification in the Official Gazette, declare this section to apply to such *[State or States or area], and thereupon every contract in such *[State or States or area] which is entered into after date of the notification otherwise than *[between members of a recognised stock exchange or recognised stock exchanges] in such *[State or States or area] or through or with such member shall be illegal. *[Provided that any contract entered into between members of two or more recognised stock exchanges in such State or States or area, shall-
(i) be subject to such terms and conditions as may be stipulated by the respective stock exchanges with prior approval of Securities and Exchange Board of India;
(ii) require prior permission from the respective stock exchanges if so stipulated by the stock exchanges with prior approval of Securities and Exchange Board of India.] *[Amended and proviso inserted by Securities Laws (Amendment) Act, 2004]
| 