Section 3. Establishment and constitution of the Forward Markets Commission

CHAPTER II THE FORWARD MARKETS COMMISSION 3. Establishment and constitution of the Forward Markets Commission. —(1) The Central Government may, by notification in the Official Gazette establish a Commission to be called the Forward Markets Commission for the purpose of exercising such functions and discharging such duties as may be assigned to the Commission by or under this Act. (2) The Commission shall consist of not less than two,[1] [but not exceeding four], members appointed by the Central Government[2] [one of them being nominated by the Central Government to be the Chairman thereof; and the Chairman and the other member or members shall be either whole-time or part-time as the Central Government may direct]: 3[Provided that the members to be so appointed shall be persons of ability, integrity and standing who have shown capacity in dealing with problems relating to commerce or commodity markets, or in administration or who have special knowledge or practical experience in any matter which renders them suitable for appointment on the Commission.] (3) No person shall be qualified for appointment as, or for continuing to be, a member of the Commission if he has, directly or indirectly, any such financial or other interest as is likely to affect prejudicially his functions as a member of the Commission, and every member shall, whenever required by the Central Government so to do, furnish to it such information as it may require for the purpose of securing compliance with the provisions of this sub-section. (4) No member of the Commission shall hold office for a period of more than three years from the date of his appointment, and a member relinquishing his office on the expiry of his term shall be eligible for reappointment. (5) The other terms and conditions of service of members of the Commission shall be such as may be prescribed. (k) "rules", with reference to the rules relating in general to the constitution and management of an association, includes in the case of an incorporated association its memorandum and articles of association; (l) "securities" includes shares, scrips, stocks, bonds, debentures, debenture-stocks or other marketable securities of a like nature in or of any incorporated company or other body corporate and also Government securities; (m) "specific delivery contract" means a forward contract which provides for the actual delivery of specific qualities or types of goods during a specified future period at a price fixed thereby or to be fixed in the manner thereby agreed and in which the names of both the buyer and the seller are mentioned; (n) "transferable specific delivery contract" means a specific delivery contract which is not a nontransferable specific delivery contract,[3] [and which is subject to such conditions relating to its transferability as the Central Government may, by notification in the Official Gazette, specify in this behalf.] 1. Added by Act 53 of 1971, s. 2 (w.e.f. 11-10-1971). 2. Subs. by Act 62 of 1960, s. 3, for Cl. (j) (w.e.f. 28-12-1960). 3. Added by s. 3, ibid . (w.e.f. 28-12-1960).