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Notification No: SEBI/LAD-NRO/GN/2024/187
Notification Date: 27th June, 2024
Relevant Act / Rule: SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003
Relevant Section/Rule: Regulation 2(1), 4(1)
SEBI has amended SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 vide SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) (Amendment) Regulations, 2024 on 27th June, 2024.
The amendment pertains to introduction of provisions relating to mule accounts, its definition and clarification that transactions through mule accounts shall be deemed to be manipulative, fraudulent and unfair trade practice practices. It has also been clarified that any act of diversion, misutilisation or siphoning off of assets or earnings of a company whose securities are listed or any concealment of such act or any device, scheme or artifice to manipulate the books of accounts or financial statement of such a company that would directly or indirectly manipulate the price of securities of that company shall be considered as manipulative, fraudulent and unfair trade practice practices in the securities market.
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