TaxTMI 
TaxTMI 
International Financial Services Centres Authority (Prohibition of Market Abuse in Securities Markets) Regulations, 2026.
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....me into force on the date of their publication in the Official Gazette. 2. Objective. These Regulations specify the framework for prohibiting market abuse in the securities market in the International Financial Services Centre, in order to protect the interests of investors. 3. Definitions. (1) In these Regulations, unless the context otherwise requires,- (a) "Act" means the International Financial Services Centres Authority Act, 2019 (50 of 2019); (b) "Authority" means the International Financial Services Centres Authority established under sub-section (1) of section 4 of the Act; (c) "connected person" means a person who is or has been, during the six months prior to the concerned act, associated with an entity, directly or indirectly, in any capacity, including by reason of,- (i) frequent communication with its officers; (ii) any contractual, fiduciary or employment relationship; (iii) being a director, officer or an employee ; or (iv) holding any position, including a professional or business relationship, whether temporary or permanent, that allows or is reasonably expected to allow such person, directl....
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....ied that the scope of this clause shall not extend to any general comment made in good faith regarding:- (i) the economic policy of a government; (ii) the economic situation of a country; (iii) trends in the securities markets; or (iv) any other matter of a like nature, irrespective of whether such comments are made in public or in private; (g) "immediate relative" means spouse of a person and includes parent, sibling, and child of such person or of the spouse, any of whom is either dependent financially on such person, or consults such person in taking decisions relating to trading in securities; (h) "insider" means any person who is,- (i) a connected person; or (ii) in possession of, or having access to, material non-public information; (i) "International Financial Services Centre" shall have the same meaning as assigned to it under clause (g) of sub-section (1) of section 3 of the Act; (j) "listed" means listed on a recognised stock exchange in the International Financial Services Centre; (k) "market abuse" means unlawful behaviour in the securities market, and shall inclu....
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.... of corporate insolvency resolution process against the entity as a corporate debtor, approval of resolution plan or rejection thereof under the Insolvency and Bankruptcy Code, 2016, or any similar proceedings under the laws of any foreign jurisdiction; (xii) initiation of forensic audit, by whatever name called, by the entity or any other entity for detecting mis-statement in financials, misappropriation or siphoning or diversion of funds and receipt of final forensic audit report; (xiii) action(s) initiated or orders passed within India or abroad, by any regulatory, statutory, enforcement authority or judicial body against the entity or its directors, key managerial personnel, promoter or subsidiary, in relation to the entity; (xiv) outcome of any litigation(s) or dispute(s) which may have an impact on the entity; (xv) giving of guarantees or indemnity or becoming a surety, by whatever name called, for any third party, by the entity not in the normal course of business; or (xvi) grant, withdrawal, surrender, cancellation or suspension of key licenses or regulatory approvals; (m) "mule account" includes a trading account mainta....
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....gulations. (2) No person shall procure from, or cause the communication by, any insider of material non-public information, relating to an entity or securities listed or proposed to be listed, except in furtherance of legitimate purposes, performance of duties or discharge of legal obligations. (3) A person in receipt of material non-public information pursuant to legitimate purposes shall be considered an "insider" for the purposes of these Regulations and such person shall handle such material non-public information in compliance with these Regulations. 5. Trading when in possession of material non-public information. (1) No insider shall trade or cause any other person to trade in securities that are listed or proposed to be listed, when in possession of material non-public information. (2) Where a person has traded in securities while being in possession of material non-public information, it shall be presumed that such trade(s) were executed on the basis of such information possessed by him. (3) Where a person has traded in securities while in possession of material non-public information, he may explain his trading by demonstrating the circumstances, includi....
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.... transactions, over any calendar quarter, aggregates to a traded value in excess of USD twenty-five thousand or such other value as may be specified by the Authority. Explanation 1.- For the purposes of this sub-regulation, the term "specified securities" shall include equity instruments, debt securities, and any other derivative instruments of the listed entity. Explanation 2.- The term "equity instruments" means equity shares, convertible debentures, preference shares and share warrants issued by the listed entity. (3) The listed entity shall, within two working days of receipt of the disclosure under sub-regulation (2), notify such information to the recognised stock exchange(s) where its securities are listed, and also host such disclosure on its website. CHAPTER III PROHIBITION OF MANIPULATIVE, FRAUDULENT AND UNFAIR TRADE PRACTICES 7. Prohibition of certain dealings in securities. No person shall directly or indirectly,- (a) buy, sell or otherwise deal in securities in a fraudulent manner; (b) use or employ, any manipulative or deceptive device or contrivance in contravention of the provisions of the Act, the Securities and Ex....
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.... and acquisitions, regulatory approvals, which is not true, or which he does not believe to be true prior to or in the course of dealing in securities; (g) entering into a transaction in securities without intention of performing it or without intention of change of ownership of such security; (h) selling, dealing in or pledging of stolen, counterfeit or fraudulently issued securities whether in physical or dematerialised form: Provided that such selling, dealing in or pledging of stolen, counterfeit or fraudulently issued securities shall not be considered as a manipulative, fraudulent, or unfair trade practice if,- (i) the person selling, dealing in or pledging stolen, counterfeit or fraudulently issued securities was a holder in due course; or (ii) the stolen, counterfeit or fraudulently issued securities were previously traded on the market through a bona fide transaction; (i) disseminating information or advice through any media, whether physical or digital, which the disseminator knows to be false or misleading and which is designed to, or likely to, influence the decision of investors dealing in securities; (j) a....
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....e price of its securities; (v) manipulation of the books of accounts or financial statements of the entity that would directly or indirectly manipulate the price of its securities; or (w) illegal mobilisation of funds by sponsoring or causing to be sponsored or carrying on or causing to be carried on any collective investment scheme by any person; Explanation.- For the removal of doubts, it is clarified that the acts and omissions listed in this sub-regulation are not exhaustive, and an act or omission is prohibited if it falls within the purview of regulation 7, notwithstanding the fact that it is not included in this sub-regulation or has been described as being committed or omitted only by a certain category of person(s) in this sub-regulation. CHAPTER IV MISCELLANEOUS 9. Institutional mechanism for prevention of market abuse. (1) Every listed entity shall put in place an adequate and effective system of internal controls and a code of conduct to ensure compliance with these Regulations to prevent market abuse. (2) The internal controls shall, inter-alia, provide for the following,- (a) identification and maintenance of confiden....