Section 8(3) in Securities Contracts (Regulation) Rules, 1957
(3)No person who is a member at the time of application for recognition or subsequently admitted as a member shall continue as such if-(a)he ceases to be a citizen of India :Provided that nothing herein shall affect those who are not citizens of India but who were members at the time of such application or were admitted subsequently under the provisions of clause (b) of sub-rule (1) of this rule, subject to their complying with all other requirements of this rule;(b)he is adjudged bankrupt or a receiving order in bankruptcy is made against him or he is proved to be insolvent;(c)he is convicted of an offence involving fraud or dishonesty;(d)[* * *] [Omitted by GSR 1070(E) dated 15.11.1988.](e)[* * *] [Omitted by GSR 1070(E) dated 15.11.1988.](f)he engages either as principal or employee in any business other than that of securities [or commodity derivatives] [Inserted by the Securities Contracts (Regulation) (Amendment) Rules, 2003, w.e.f. 28.08.2003.] except as a broker or agent not involving any personal financial liability, provided that-(i)the governing body may, for reasons, to be recorded in writing, permit a member to engage himself as principal or employee in any such business, if the member in question ceases to carry on business on the stock exchange either as an individual or as a partner in a firm,(ii)in the case of those members who were under the rules in force at the time of such application permitted to engage in any such business and were actually so engaged on the date of such application, a period of three years from the date of the grant of recognition shall be allowed for severing their connection with any such business,(iii)[ nothing herein shall affect members of a recognised stock exchange which are corporations, bodies corporate, companies or institutions referred to in items [(a) to (n) of the proviso to sub-rule (8).] [Substituted by the Securities Contracts (Regulation) (Amendment) Rules, 2003, w.e.f. 28.08.2003. Prior to its substitution, sub-clause (iii) read as under: '(iii) nothing herein shall affect members of a recognized stock exchange permitted under the proviso to clause (f) of sub-rule(1) to suspend the enforcement of the aforesaid clause, for so long as such suspension is effective, except that no member of such exchange shall engage in forward business of any kind whether in goods or commodities or otherwise and , if actually so engaged on the date of such application , he shall sever his connection with any such business within a period of three years from the date of the grant of recognition.']
