Prohibition on speculative contracts: restricts forward and ready forward deals, permitting limited ready forward in government securities under account and settlement rules. Reserve Bank of India prohibits contracts in Government, gold-related and money-market securities other than spot delivery or exchange permitted contracts, and bans ready forward contracts in bonds, debentures and other debt securities, while permitting ready forward transactions only in Government securities for specified entities holding Subsidiary General Ledger, Constituent Subsidiary General Ledger or Gilt accounts. Permitted ready forward contracts must be settled through Public Debt Office ledger accounts under RBI-specified terms; certain intra-account and self-account transactions between specified account types are expressly barred, and outstanding contracts continue until contractual termination.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Prohibition on speculative contracts: restricts forward and ready forward deals, permitting limited ready forward in government securities under account and settlement rules.
Reserve Bank of India prohibits contracts in Government, gold-related and money-market securities other than spot delivery or exchange permitted contracts, and bans ready forward contracts in bonds, debentures and other debt securities, while permitting ready forward transactions only in Government securities for specified entities holding Subsidiary General Ledger, Constituent Subsidiary General Ledger or Gilt accounts. Permitted ready forward contracts must be settled through Public Debt Office ledger accounts under RBI-specified terms; certain intra-account and self-account transactions between specified account types are expressly barred, and outstanding contracts continue until contractual termination.
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