The term "securities" has been defined in the SCRA. As per Section 2(h), the "Securities' include-
(i) Shares, scrips, stocks, bonds, debentures, debenture stock or other marketable securities of a like nature in or of any incorporated company or other body corporate,
(ii) Government securities,
(iia) such other instruments as may be declared by the Central Government to be securities, and
(iii) Rights or interests in securities.
Derivative was included in the definition of security in order to bring into place regulation of derivatives in 1999. This helped the development of the derivatives market.
(i) Shares, scrips, stocks, bonds, debentures, debenture stock or other marketable securities of a like nature in or of any incorporated company or other body corporate,
(a) Derivative,
(b) Units or any other instrument issued by any collective investment scheme to the investors in such schemes,
(ii) Government securities,
(iia) such other instruments as may be declared by the Central Government to be securities, and
(iii) Rights or interests in securities.
Derivative was included in the definition of security in order to bring into place regulation of derivatives in 1999. This helped the development of the derivatives market.
