Respondent – SEBI, that after the commencement of the Finance Act, 2015, all recognized associations under the FCR Act, would be deemed to be recognized stock exchanges under the Security Contracts (Regulations) Act, 1956. Relying on the second proviso of Section 28A, it is submitted that a person buying or selling or otherwise dealing in commodity derivatives as a commodity derivatives broker, or such other intermediary who may be associated with the commodity derivatives market, immediately before the transfer and vesting of rights and assets to the SEBI, for which no registration certificate was necessary prior to such transfer, would be entitled to continue to do so for a period of three months from such transfer or, if he has made an application for such registration within the said period of three months, till the disposal of said application. It is submitted that by virtue of said second proviso, the Petitioners, who were not required to be registered under the FCR Act, were now required to be registered under the provisions of the SEBI Act. It is submitted that a broker etc. would be permitted to continue with the business which he was doing prior to the commencement of the said act for a period of three months and if he has made an application for registration, then till
