Securities Contracts (Regulation) Act, 1956
20.Prohibition of options in securities.-
(1) Notwithstanding anything contained in this Act or in any other law for the time being in force, all options in securities entered into after the commencement of this Act shall be illegal.
(2) Any option in securities which has been entered into before such commencement and which remains to be performed, whether wholly or in part, after such commencement, shall, to that extent, become void.
Listing of Securities By Public Companies