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12/04/2026

Securities Law in India

advtanmoy 25/09/2017 3 minutes read

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American jurisprudence which has developed around Title 17, Code of Federal Regulations, Part 240, Rule 10b-5 (Prohibition of use of manipulative or deceptive devices or contrivances with respect to certain securities exempted from registration). It is to be noted that much of Indian securities laws have similar provisions.[ SECURITIES AND EXCHANGE BOARD OF INDIA Versus SHRI KANAIYALAL BALDEVBHAI PATEL SEPTEMBER 20, 2017]

BULLET 2Market manipulation

In Vincent F. Chiarella v. United States[445 U.S. 222 (1980), the United States Supreme Court was seized of the matter relating to securities fraud under section 10b of the Securities Exchange Act, 1934.

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BULLET 2Unfair trade practice

  • Monopolies and Restrictive Trade Practices Act, 1969,
  •  The Consumer Protection Act, 1986
  • The Competition Act, 2002,
  •  The Food Security and Standards Act, 2006,
  •  Specific Relief Act, 1963,
  •  Usurious Loans Act, 1918

Statutes

ARROWSecurities Contracts (Regulation) Act, 1956
BULLET 2SEBI Act, 1992
ARROW Securities Appellate Tribunal, Appeals, Appearance before SAT
ARROWDepositories Act, 1996
ARROWIssue and Listing of Securities

  • Employee Stock Option Scheme and Employee Stock Purchase Scheme
  • Delisting of Securities

ARROW Regulatory Framework relating to Securities Market Intermediaries
Role and Functions, Merchant Bankers, Stock Brokers, Syndicate Members, Registrars, Underwriters, Bankers to an Issue, Portfolio Managers, Debenture Trustees, Foreign Institutional Investors, Custodians, Credit Rating Agencies, Venture Capitalists.
ARROWInsider Trading and Takeovers

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Supreme Court Cases

ARROWN. Narayanan v. adjudicating Officer, SEBI  (2013) 12 SCC 152

Prevention of market abuse and preservation of market integrity is the hallmark of Securities Law. Section 12A read with Regulations 3 and 4 of the Regulations 2003 essentially intended to preserve ‘market integrity’ and to prevent ‘Market abuse’. The object of the SEBI Act is to protect the interest of investors in securities and to promote the development and to regulate the securities market, so as to promote orderly, healthy growth of securities market and to promote investors protection. Securities market is based on free and open access to information, the integrity of the market is predicated on the quality and the manner on which it is made available to market. ‘Market abuse’ impairs economic growth and erodes investor’s confidence. Market abuse refers to the use of manipulative and deceptive devices,giving out incorrect or misleading information, so as to encourage investors to jump into conclusions, on wrong premises, which is known to be wrong to the abusers. The statutory provisions mentioned earlier deal with the situations where a person, who deals in securities, takes advantage of the impact of an action, may be manipulative, on the anticipated impact on the market resulting in the “creation of artificiality’.

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BULLET 2SEBI v. Kishore R. Ajmera, (2016) 6 SCC 368


 

Tags: SEBI securities Securities Law

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