The Securities and Exchange Board of India (SEBI) on May 18, 2023, issued a Consultation paper on the draft SEBI (Prohibition of Unexplained Suspicious Trading Activities in the Securities Market) Regulations, 2023.
The objective of this Consultation Paper is to solicit comments from the public on the draft SEBI Prohibition of Unexplained Suspicious Trading Activities in the Securities Market) Regulations, 2023.
Contravention of the provisions of the securities laws, particularly resulting in manipulative, fraudulent, and unfair trade practices, insider trading, front running, pump and dump, etc. severely undermine the integrity of the securities market. Insider trading, as the name suggests, provides an unfair advantage to a select few to the detriment of the vast majority and is considered one of the most severe acts of misconduct in the securities markets globally—similarly, front-running.
Activities based on material non-public information about certain trades and market manipulation through pump and dump activities are no less serious.
In order to take into consideration, the views of various stakeholders, comments are invited on the draft Regulations by June 02, 2023.
The draft regulation is annexed to the document attached.
