Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) (Amendment) Regulations, 2018

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....end the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003, namely: 1. These regulations may be called the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) (Amendment) Regulations, 2018. 2. They shall come into force on February 01, 2019. 3. In the Securities and Exchange Board of (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003, (1) in regulation 2, in sub-regulation (1), clause (b) shall be substituted with the following, namely: "(b) "dealing in securities" includes: (i) an act of buyin....

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.... v. the clause (d) shall be substituted with the following, namely: "(d) inducing any person for dealing in any securities for artificially inflating, depressing, maintaining or causing fluctuation in the price of securities through any means including by paying, offering or agreeing to pay or offer any money or money's worth, directly or indirectly, to any person;" vi. in the clause (e), after the word security the words "including, influencing or manipulating the reference price or bench mark price of any securities" shall be inserted; vii. in the clause (f) before the word 'publishing', the word 'knowingly' shall be inserted; viii. in the clause (f) after the word 'informatio....

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....on behalf of client without the knowledge of or instructions from client or misutilizing or diverting the funds or securities of the client held in fiduciary capacity"; xv. in the clause (n), after the word 'between' and before the word 'provide', the words " intermediaries in order to increase commission to" shall be substituted with the words "persons including intermediaries to artificially"; xvi. the clause (o) shall be substituted with the following, namely: "fraudulent inducement of any person by a market participant to deal in securities with the objective of enhancing his brokerage or commission or income; "; xvii. in the clause (p) after the word 'records' the words "such ....

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.... xxiii. after the "Explanation-1" the following explanation shall be inserted, namely: " Explanation-2 Market Participant shall include any person or entity registered under Section 12 of the Act and its employees and agents. " (3) in regulation 8, in sub-regulation (2) the words "section 235 to 241 of the Companies Act, 1956 (1 of 1956)" shall be substituted with the words "the Companies Act, 2013 (No. 18 of 2013)"; AJAY TYAGI, Chairman [ADVT.-III/4/Exty./472/18] Footnotes: 1. The Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 were published in the Gazette of India on July 17, 2003 vide No. S.O. 816 (E). 2. T....