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<h1>Stock Exchanges Must Apply for Recognition Under Section 3 of Securities Contracts Act 1956: Key Requirements Explained</h1> Section 3 of the Securities Contracts (Regulation) Act, 1956, outlines the process for a stock exchange to apply for recognition. A stock exchange seeking recognition must submit an application to the Central Government, including prescribed particulars and copies of its bye-laws and rules. These documents should detail the exchange's governing body, management powers, membership criteria, and procedures for member admission and expulsion. Additionally, they must cover the registration of partnerships as members and the appointment of authorized representatives. The Securities and Exchange Board of India (SEBI) also holds powers regarding these applications.