THE ENABLING LEGAL CHANGES I do not agree with the Committee’s suggestions which circumvents laws makers authority and their prerogative to discuss, decide and change the enabling laws. In section 2.18 (page 19), it has been suggested that government is considering expanding the definition of securities under section 2h (iia) of the Securities Contracts (Regulation) Act, 1956 to enable market index based derivative products. If newspaper reports are to be believed the Law Ministry has already raised legal objection to effecting change through a notification on the grounds that the changes under consideration are "substantive" in nature (Business Standard - December 30, 1997)

All changes in the Act should be through properly amending various Acts such as Indian Contracts Act, SC(R) Act etc. So that there is an opportunity for the law-makers to debate the issues which prohibit wagering contract. A futures contract based on market index to be settled in differences of price is nothing but a wagering contract.

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