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Answer: According to the Securities Contracts (Regulation) Act, 1956, a stock exchange is a body of individuals, whether incorporated or not, constituted for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities.

  • It is an organised market for buying and selling existing securities like shares, debentures and bonds.
  • Only listed securities are traded, and only through registered members (brokers).
  • It is regulated by SEBI; in India the major stock exchanges are BSE and NSE.
  • It provides liquidity, safety of transactions and a continuous market for securities.
Doubtly AI · 29 Oct 2026 AI-verified · Nov 2026 Report
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