Section 13. Contracts in notified areas illegal in certain circumstances

13. Contracts in notified areas illegal in certain circumstances. —If the Central Government is satisfied, having regard to the nature or the volume of transactions in securities in any[6] [State or States or area], that it is necessary so to do, it may, by notification in the Official Gazette, declare this section to apply to such[6] [State or States or area], and thereupon every contract in such[6] [State or States or area] which is entered into after the date of the notification otherwise than[7] [between members of a recognised stock exchange or recognised stock exchanges] in such[6] [State or States or area] or through or with such member shall be illegal. 8[Provided that any contract entered into between members of two or more recognised stock exchanges in such State or States or area, shall— (i) be subject to such terms and conditions as may be stipulated by the respective stock exchanges with prior approval of Securities and Exchange Board of India; 1. Subs. by Act 56 of 1974, s. 2 and the I Sch. for "recognised association" (w.e.f. 20-12-1974). 2. Ins. by Act 1 of 2005, s. 6 (w.e.f. 12-10-2004). 3. S. 12A numbered as thereof by sub-section (1) by Act 13 of 2018, s. 147 (w.e.f. 8-3-2019). 4. Ins. by Act 27 of 2014, s. 24 (w.e.f. 8-9-2014). 5. Ins. by Act 13 of 2018, s. 147 (w.e.f. 8-3-2019). 6. Subs. by Act 1 of 2005, s. 7, for "State or area" (w.e.f. 12-10-2004). 7. Subs. by s. 7, ibid ., for "between members of a recognised stock exchange" (w.e.f. 12-10-2004). 8. Ins. by s. 7, ibid . (w.e.f. 12-10-2004). (ii) require prior permission from the respective stock exchanges if so stipulated by the stock exchanges with prior approval of the Securities and Exchange Board of India.] 1[13A. Additional trading floor. —A stock exchange may establish additional trading floor with the prior approval of the Securities and Exchange Board of India in accordance with the terms and conditions stipulated by the said Board. Explanation .—For the purposes of this section, "additional trading floor" means a trading ring or trading facility offered by a recognised stock exchange outside its area of operation to enable the investors to buy and sell securities through such trading floor under the regulatory framework of that stock exchange.]