SEBI (Prohibition of Fraudulent & Unfair Trade Practices relating to Securities Market) (Amendment) Regulations 2022

SEBI (Prohibition of Fraudulent & Unfair Trade Practices relating to Securities Market) (Amendment) Regulations 2022

The Securities and Exchange Board of India has notified the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) (Amendment) Regulations, 2022 to further amend the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003

Dealing in securities shall be deemed to be a manipulative fraudulent or an unfair trade practice if it involves disseminating information or advice through any media, whether physical or digital, which the disseminator knows to be false or misleading in a reckless or careless manner and which is designed to, or likely to influence the decision of investors dealing in securities. The words “reckless or careless manner” has been added in the Regulation 4(2)(k).

Further, in Regulation 6 relating to the power of the Investigating Authority, the following new powers has been added:

(i) Power to call for information and record from any person including any bank or any other authority or board or corporation in respect of any transaction in securities which are under investigation;
 
(ii) Power to make an application to the Judge of the designated notified court in Mumbai for an order for the seizure of any books, registers, other documents and record, if it has reasons to believe that they may be destroyed, mutilated, altered, falsified or secreted;
 
(iii) Power to keep in his custody the books, registers, other documents and record seized till the conclusion of the investigation and to place identification marks on them before returning them. 
 

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