Critically examine the following: 'A recognized stock exchange has power to make bye-laws for the regulation and control of contracts'.

As per Section 9 of the Securities Contracts (Regulation) Act, 1956 any recognized stock exchange may, subject to the previous approval of SEBI, make bye-laws for the regulation and control of contracts. In particular, and without prejudice to the generality of the foregoing power, such bye-laws may provide for: The opening and closing of markets and the regulation of the hours of trade; A clearing house for the periodical settlement of contracts and differences thereunder, the delivery of and payment for securities, the passing on of delivery orders and the regulation and maintenance of such clearing house; The regulation or prohibition of blank transfers; The number and classes of contracts in respect of which settlements shall be made or differences paid through the clearing house; The regulation, or prohibition of budlas or carry-over facilities; The fixing, altering or postponing of days for settlements; The determination and declaration of market rates, including the opening, closing, highest and lowest rates for securities; The listing of securities on the stock exchange, the inclusion of any security for the purpose of dealings and the suspension or withdrawal of any such securities, and the suspension or prohibition of trading in any specified securities; The method and procedure for the settlement of claims or disputes, including settlement by arbitration; The levy and recovery of fees, fines and penalties; The regulation of the course of business between parties to contracts in any capacity; The fixing of a scale of brokerage and other charges; The emergencies in trade which may arise, whether as a result of pool or syndicated operations or concerning or otherwise, and the exercise of powers in such emergencies including the power to fix maximum and minimum prices for securities; The making, comparing, settling and closing of bargains; The regulation of dealings by members for their own account; The separation of the functions of jobbers and brokers; The limitations on the volume of trade done by any individual member in exceptional circumstances; The obligation of members to supply such information or explanation and to produce such documents relating to the business as the governing body may require.