Section 5 in Forward Contracts (Regulation) Act, 1952
5. Application for recognition of associations.
(1)Any association concerned with the regulation and control of forward contracts which is desirous of being recognised for the purposes of this Act may make an application in the prescribed manner to the Central Government.(2)Every application made under sub-section (1) shall contain such particulars as may be prescribed and shall be accompanied by a copy of the bye-laws for the regulation and control of forward contracts and also a copy of the rules relating in general to the constitution of the association, and, in particular to--(a)the governing body of such association, its constitution and powers of management and the manner in which its business is to be transacted;(b)the powers and duties of the office-bearers of the association;(c)the admission into the association of various class of members, the qualifications of members, and the exclusion, suspension, expulsion and readmission of members therefrom or therein to;(d)the procedure for registration of partnerships as members of the association and the nomination and appointment of authorised representatives and clerks. 6 Grant of recognition to association.-(1)If the Central Government, after making such inquiry as may be necessary in this behalf and after obtaining such further information, if any, as it may require, is satisfied that it would be in the interest of the trade and also in the public interest to grant recognition to the association which has made an application under Sec. 5, it may grant recognition to the association in such form and subject to such conditions as may be prescribed or specified, and shall specify in such recognition the goods or classes of goods with respect to which forward contracts may be entered into between members of such association or through or with any such member.(2)Before granting recognition under sub-section (1), the Central Government may, by order, direct,- (a) that there shall be no limitation on the number of members of the association or that there shall be such limitation on the number of members as may be specified;(b)that the association shall provide for the appointment by the Central Government of a person, whether a member of the association or not as representative on, and of not more than three persons representing interests not directly represented through membership of the association as member or members of the governing body of such association and may require the association to incorporate in its rules any such direction and the conditions, if any, accompanying it.(3)No rules of a recognised association shall be amended except with the approval of the Central Government.(4)Every grant of recognition under this section shall be published in the Gazette of India and also in the Gazette of the State in which the principal office of the recognised association is situated, and such recognition shall have effect as from the date of its publication in the Gazette of India.
