The securities and exchange Board of India (Sebi) has decided to tighten norms for tackling fraudulent and unfair trade practices so as to hold individuals as well as market entities equally guilty for manipulations by removing regulatory lacunae.
It is also expanding the list of activities that attract penal actions under its Prevention of Fraudulent and Unfair Trade Practices regulations, a senior official said.
These norms cover a wide array of manipulative activities, such as publishing advertisements with misleading or distorted information to influence the investors' decision, planting of false or misleading news and inducing investors to carry out transactions for personal gains.
In a meeting held last week, Sebi's board decided to include unauthorised Collective Inves-tment Schemes (CIS) in the list of fraudulent and unfair trade practices. Another major change is in leaving the list of ‘fraudulent and unfair trade practices’ open ended, rather than restricting it to 19 broad categories currently.