The Securities and Exchange Board of India (SEBI) on June 28, 2024, notified the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) (Amendment) Regulations, 2024 further to amend the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003.
The following has been stated: -
•In regulation 2, in sub-regulation (1), -
i. In clause (b), in sub-clause (i), after the words “of the Act” and before the symbol “;”, the symbol and words “, either by themselves or through mule accounts” shall be inserted.
ii. After clause (d), the following clause shall be inserted, namely–
“(da) “mule account” includes a trading account maintained with a stock broker or a dematerialized account or bank account linked with such trading account in the name(s) of a person, where the account is effectively controlled by another person, whether or not the consideration for transactions in the account are paid by such other person.
They shall come into force on July 01, 2024.
The detailed amendments are given in the document below.
[Notification No. SEBI/LAD-NRO/GN/2024/187.]
