Control of contracts through recognised associations
10. (1) The Government, if satisfied that it could be in the interests of the trade and also of the public to do so, may, by a notified order and subject to such conditions, if any, as may be specified in the order, prohibit any specified kind or class of contracts, such as forward contracts or hedge contracts, unless such contracts are made through and under the control of, and in the manner prescribed by, an association recognised by the Government under sub-section (2).
(2) For the purposes of this section, the Government may, by a notified order, recognise any association, constituted for the purpose of regulating and controlling contracts, which applies for such recognition.
(3) A recognition under sub-section (2) may be granted subject to the condition that the association shall by such amendments of its articles of association, rules or bye-laws as may be necessary provide for the appointment by the Government of not more than four persons, representing interests not directly represented through membership of the association, as members of the governing body of the association.
(4) Every association, which is recognised under sub-section (2), shall furnish to the Government such information and such periodical returns relating to the affairs of the association as the Government may by order in writing require.
(5) The Government may, by order in writing, give such directions, as it considers necessary in the interests of the trade and the public, to an association recognised under sub-section (2) in respect of contracts to which this section applies.
(6) No articles, rules or bye-laws of an association recognised under sub-section (2) shall be altered save with the previous approval of the Government.
(7) Whenever the Government considers it expedient to do so, it may by order in writing, direct any association recognised under sub-section (2) to make, repeal or amend any articles, rules or bye-laws of the association in the manner and within a period specified in the order; and if the recognised association refuses, fails or neglects to comply with the direction within the specified period, the Government may, by a notified order, make, repeal or amend the articles, rules or bye-laws in the manner specified in the order giving the direction or with such modifications as the Government may think fit, and the making, repeal or amendment of the articles, rules or bye-laws shall be deemed to have been duly effected by the association.
(8) If the Government is of the opinion that the interests of the trade and the public require that the recognition accorded to an association under sub-section (2) should be terminated, the Government may, after giving the association a reasonable opportunity of being heard in the matter, by a notified order, terminate the recognition on and from the date of such order or any specified date subsequent thereto, and the association shall cease to be an association recognised under sub-section (2) from the date of such termination:
Provided that such termination shall not affect the validity of any contract entered into or made before the date of such termination.