Indian Bare Acts

Search Alphabatically :

THE FORWARD CONTRACTS (REGULATION)ACT, 1952

Title : THE FORWARD CONTRACTS (REGULATION)ACT, 1952

Year : 1952



Any person who-

(a) (i) In any return, statement or other document required by or under this Act, makes a statement which is false in any material particular, knowing it to be false, or willfully omits to make material statement; or

(ii) Without reasonable excuse (the burden of proving which shall be on him) fails to furnish any return, statement or other document or any information or to answer any question or to comply with any requisition made under this Act or any rules made thereunder; or

(iii) Enters into any [forward contract] during the period of
suspension of business of a recognised association in pursuance of a notification under section 14; or

(b) Is a member of any association, other than a recognised association, to which a certificate of registration has not been granted under this Act; or

(c) Publishes or circulates information relating to the rate at which any [forward contract] has been entered into in contravention of any of the bye-laws of a recognised association; or

(d) Organises, or assists in organising, or is a member of, any association in contravention of the provisions contained in the proviso to sub-section (1) of section 18; or

(e) Enters into any forward contract or any option in goods in contravention of any of the provisions contained in sub-section (1) or sub-section (3 A) or sub-section (4) of section 15, section 17 or section 19, shall, on conviction be punishable-

(i) For a first offence, with imprisonment which may extend to one year, or with a fine of not less than [one thousand rupees], or with both;

(ii) For a second or subsequent offence under clause (d), or clause (e) (other than an offence in respect of a contravention of the provisions of sub-section (4) of section 15), with imprisonment which may extend to one year and also with fine: Provided that in the absence of special or adequate reasons to the contrary to be mentioned in the judgment of the Court, the imprisonment shall not be less than one month and the fine shall not be less than [one thousand rupees].]

------------------------------------------------------------------------------------------------------------------------------------------------------

1. Substituted for former section by the Forward Contracts (Regulation) Amendment Act, 1960 (62 of 1960), Section 17 (28-12-1960).

------------------------------------------------------------------------------------------------------------------------------------------------------



Any person who-

(a) Owns or keeps a place other man that of a recognised association, which is used for the purpose of entering into or making or performing, whether wholly or in part, any [forward contracts] in contravention of any of the provisions of this Act and knowingly permits such place to be used for such purposes, or

(b) Without the permission of Central Government, organises, or assists in organising, or becomes a member of, any association, other than a recognised association, for the purpose of assisting in entering into or making or performing, whether wholly or in part, any [forward contracts] in contravention of any of the provisions of this Act, or

(c) Manages, controls or assists in keeping any place other man that of a recognised association, which is used for the purpose of entering into or making or performing, whether wholly or in part, any [forward contracts] in contravention of any of the provisions of this Act or at which such [forward contracts] are recorded or adjusted, or rights or liabilities arising out of such [forward contracts] are adjusted, regulated or enforced in any manner whatsoever, or

(d) Not being a member of a recognised association, willfully represents to, or induces, any person to believe that he is a member of a recognised association or that [forward contracts] can be entered into or made or performed, whether wholly or in part, under this Act through him, or

(e) Not being a member of a recognised association or his agent authorised as such under the rules or by-laws of such association, canvasses, advertises or touts in any manner, either for himself or on behalf of any other person, for any business connected with [forward contracts] in contravention of any of the provisions of this Act, or

(f) Joins, gathers, or assists in gathering at any place, other than the place of business specified in the bye-laws of a recognised association, any person or persons for making bids or offers or for entering into or making or performing, whether wholly or in part, any [forward contracts] in contravention of any of the provisions of this Act, or

(g) Makes, publishes or circulates any statement or information which is false and which he either knows or believes to be false, affecting or tending to affect the course of business in [forward contracts] in respect of goods to which the provisions of section 15 have been made applicable,1*[or]

2*[(h) Manipulates or attempts to manipulate prices in respect of [forward contracts] for the sale or purchase of any goods specified in any notification,]

3*[shall, on conviction, be punishable-

(i) For a first offence, with imprisonment which may extend to two years, or with fine of not less than [one thousand rupees], or with both;

(ii) For a second or subsequent offence, with imprisonment which may extend to two years and also with fine: Provided that in the absence of special and adequate reasons to the contrary to be mentioned in the judgment of the Court, the imprisonment shall not be less than one month and the fine shall not be less than [one thousand rupees].

21A - 4* Power of Court to order forfeiture of property

Any Court trying an offence punishable under section 20 or section 21 may, if it thinks fit and in addition to any sentence which it may impose for such offence, direct that any money, goods or other property in respect of which the offence has been committed, shall be forfeited to the Central Government.

Explanation
.- For the purposes of this section, property in respect of which an offence has been committed, shall include deposits in a bank where the said property is converted into such deposits.]

--------------------------------------------------------------------------------------------------------------------------------------------------------

1. Inserted in clause (g) by the Forward Contracts (Regulation) Amendment Act 1960 (62 of 1960), Section 18 (28-12-1960).

2. Inserted after clause (g) by the Forward Contracts (Regulation) Amendment Act 1960 (62 of 1960), Section 18 (28-12-1960).

3. Substituted for "shall, on conviction, be punishable with imprisonment which may extend to two years, or with fine, or with both" by the Forward Contracts (Regulation) Amendment Act 1960 (62 of 1960), Section 18 (28-12-1960).

4. Inserted by the Forward Contracts (Regulation) Amendment Act, 1960 (62 of 1960), Section 19 (28-12-1960).

--------------------------------------------------------------------------------------------------------------------------------------------------------



(1) Where an offence has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to the company for the conduct of the business of the company, as well the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:

Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any gross negligence on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Explanation.- For the purposes of this section.-

(a) "Company" means any body corporate and includes a firm or other association of individuals; and

(b) "Director", in relation to a firm, means a partner in the firm.

22A - 1* Power to search and seize books of accounts or other documents

(1) Any presidency magistrate or a magistrate of the first class may, by warrant, authorise any police officer not below the rank of sub-inspector to enter upon and search any place where books of accounts or other documents relating to forward contracts or options in goods entered into contravention of the provisions of this Act, may be or may be reasonably suspected to be, and such police officer may seize any such book or document, if in his opinion, it relates to any such forward contract or option in goods.

(2) The provisions of the Code of Criminal Procedure 1898, shall, so far as may be, apply to any search or seizure made under sub-section (1) as they apply, to any search or seizure made under the authority of a warrant issued under section 98 of the said Code.

22B -1* Presumptions to be drawn in certain cases

(1) Where any books of account or other documents are seized from any place and there are entries therein making reference to quantity, quotations, rates, months of delivery, receipt or payment of differences or sale or purchase of goods or option in goods, such books of account or other documents shall be admitted in evidence without witnesses having to appear to prove the same and such entries shall be prima facie evidence of the matters, transactions and accounts purported to be therein recorded.

(2) In any trial for an offence punishable under Section 21, it shall be presumed, until the contrary is proved, that the place in which the books of accounts or other documents referred to in sub-section (1) were seized, was used, and that the persons found therein were present, for the purpose of committing the said offence.]

---------------------------------------------------------------------------------------------------------------------------------------------------------

1. Sections 22-A, 22B, inserted, by Act 62 of 1960, Section 20 (28-12-1960).

---------------------------------------------------------------------------------------------------------------------------------------------------------



Notwithstanding anything contained in the Code of Criminal Procedure, 1898,1*[the following offences shall be deemed to be cognizable within the meaning of that Code, namely:-

(a) An offence falling under sub-clause (ii) of clause (a) of section 20 in so far as it relates to the failure to comply with any requisition made under sub-section (3) of Section 8;

(b) An offence falling under clause (d) of section 20;

(c) An offence falling under clause (e) of section 20 other than a contravention of the provisions of sub-section (3A) or sub-section (4) of section 15;

(d) An offence falling under section 21.]

---------------------------------------------------------------------------------------------------------------------------------------------------------

1. Substituted for the words "any offence punishable under sub-section (1) of Section 20 or Section 21 shall be deemed to be a cognisable offence within the meaning of the Code", by Act 62 of 1960, Section 21 (28-12-1960).

---------------------------------------------------------------------------------------------------------------------------------------------------------



No Court inferior to that of a Presidency Magistrate or a Magistrate of the first class shall take cognizance of or try any offence punishable under this Act.
Last updated on July, 2016

Find a Lawyer

Legal Hall of Fame

The current Legal Luminaries of India, the credible names in the legal circle along with those who would be the leading stars of the next decade. These are some of the reliable names in field of law. Nominate the Legal Stars of tomorrow

More

Recent Judgment


Sudha Mishra vs. Surya Chandra Mishra( R.F.A 299 of 2014

The Hon'ble High Court of Delhi in Sudha Mishra vs. Surya Chandra Mishra (R.F.A 299 of 2014)has ruled that a woman has a right over the property of her husband but she cannot claim a right to live in the house of her parents-in-law

More

Bare Acts

Helpline Law provides a user friendly compendium of Indian Law & Bare Acts. Get a complete list & detail of Indian Bare Acts, with amendments and repeals. It comes with easy-to-use features like Search by bare acts & by year. You can even email the information to yourself!

More

Have a Legal Matter ?
Need a Lawyer?

Have a Legal Matter ?

Need a Lawyer?

Male
Female