Section 10A in The Forward Contracts (Regulation) Act, 1952
10A. Clearing corporation .—(1) A recognized association may, with the prior approval of the Commission, transfer the duties and functions of a clearing house to a clearing corporation, being a company incorporated under the Companies Act, 1956 (1 of 1956), for the purposes of—(a) the periodical settlement of contracts and differences thereunder;
(b)the delivery of, and payment for, goods;(c)any other matter incidental to, or connected with, such transfer.(2)Every clearing corporation shall, for the purpose of transfer of the duties and functions of a clearing house to a clearing corporation referred to in sub-section (1), make bye-laws and submit the same to the Commission for its approval.(3)The Commission may, on being satisfied that it is in the interest of the trade and also in the public interest to transfer the duties and functions of a clearing house to a clearing corporation, grant approval to the bye-laws submitted to it under sub-section (2) and approve transfer of the duties and functions of clearing house to a clearing corporation referred to in sub-section (1).(4)The provisions of sections 4, 5, 6, 7, 8, 9, 10, 11, 12, 12A, 12B, and 13(1) shall, as far as may be, apply to a clearing corporation referred to in sub-section as they apply in relation to a recognised association.]
