Section 6 in The Bombay Forward Contracts Control Act, 1947
6. Power of recognised association to make, add to, vary or rescind bye-laws.
(1)Any recognised association may, subject to the sanction of the Provincial Government, make and, from time to time, add to, vary or rescind bye-laws for the regulation and control of forward contracts in goods for which such association has been recognised.(2)In particular and without prejudice to the generality of the foregoing power, such bye-laws may provide for(a)the opening and closing of markets and the times during which such market shall remain open or closed and regulating the hours of trade;(b)a clearing house for the periodical settlement of contracts and the differences thereunder, for the delivery of and payment for goods and for the passing on of delivery orders and the regulation and maintenance of such clearing house;(c)the number and classes of contracts in respect of which settlements shall be made or differences paid through the clearing house;(d)fixing, altering or postponing settling days;(e)determining and declaring the market rates for goods;(f)the terms, conditions and incidents of contracts and the forms of such contracts as are in writing;(g)regulating the entering into, making, performance, rescission and termination of contracts, including contracts between members, or between a commission agent and his constituent or between a broker and a jatthawala or muccadum and his constituent or between a member of the recognised association, and a person who is not a member, and the consequences of insolvency on the part of a seller or buyer or intermediary, the consequences of a breach or omission by a seller or buyer and the responsibility of commission agents, muccadums and brokers not parties to such contracts;(h)the admission and prohibition of specified classes or types of goods or of dealings in goods by a member of the recognised association;(i)the method and procedure for settlement of claims and disputes including settlement by arbitration;(j)the levy and recovery of fees, fines and penalties;(k)regulating the course of business between parties to contracts in any capacity;(l)fixing of a scale of brokerage and other charges;(m)the making, comparing, settling and closing of bargains;(n)the regulation of fluctuations in rates and prices;(o)emergencies and the exercise of powers in such emergencies;(p)the regulation of dealings by members for their own account.(3)The bye-laws may provide that the contravention of any of the bye-Laws shall -(i)make a contract which is entered into, made or is to be performed otherwise than in accordance with the bye-law void or illegal;(ii)render the member liable to expulsion, suspension, fine or other non-monetary penalty.(4)Bye-laws or any addition to or variation or rescission of such byelaws made under this section shall be subject to the condition of previous publication unless such condition is dispensed with by the Provincial Government in the interest of the trade or in public interest and when sanctioned by the Provincial Government shall be published in the Official Gazette.
