Comment on the following: The recognised stock exchange has powers to make rules for restricting voting rights.

Section 7A of the Securities Contracts (Regulation) Act, 1956 stipulates that a recognised stock exchange may make rules or amend any rules made by it to provide for all or any of the following matters, namely: the restriction of voting rights to members only in respect of any matter placed before the stock exchange at any meeting; the regulation of voting rights in respect of any matter placed before the stock exchange at any meeting so that each member may be entitled to have one vote only, irrespective of his share of the paid-up equity capital of the stock exchange; the restriction on the right of a member to appoint another person as his proxy to attend and vote at a meeting of the stock exchange; and such incidental, consequential and supplementary matters as may be necessary to give effect to any of the matters specified above.