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of <h1>Companies Must Obtain SEBI Approval to Use 'Stock Exchange' in Names, Ensuring Investor Protection Under SCR Act 1956.</h1> Companies are prohibited from registering with the words 'Stock Exchange' in their names without obtaining prior approval or a no-objection certificate from the Securities and Exchange Board of India (SEBI). This directive aims to prevent companies from misleadingly posing as stock exchanges and collecting deposits without proper authorization under the Securities Contracts (Regulation) Act, 1956. The Department of Company Affairs emphasizes strict compliance with this requirement, as non-compliance will be taken seriously. This measure safeguards investors from engaging with unrecognized entities falsely presenting themselves as legitimate stock exchanges.
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