SEBI amends existing PFUTP regulations 2003; broadens the power of investigating authority

  • News|Blog|Company Law|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 29 January, 2022

SEBI Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) (Amendment) Regulations; SEBI

Notification no. No. SEBI/LAD-NRO/GN/2022/71, Dated: 25-01-2022

SEBI notifies SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) (Amendment) Regulations, 2022. Amendment has been made in regulations 2, 4, 6, 8, 11A, 12 & omits regulation 7. The power of investigating authority has been broadened as no approval required before proceeding for investigation, the manner of serving summons are now defined in the regulation itself, prohibits disseminating false and misleading information or advice through any media.

SEBI through this amendment clarified that if any words and expressions used and not defined in these regulations but defined in the Act, the Securities Contracts (Regulation) Act, 1956, Depositories Act, 1996, Companies Act, 2013 or any rules or regulations made thereunder shall have the same meaning as defined there earlier no specific reference of the acts were given.

Now the maximum period of keeping custody of books and accounts and other records etc. by the investing authority is defined as 6 months.

Further, the requirement of newspaper publication of the final order passed under regulation 1 is set aside publishing the same on the website is sufficient.

Other amendments include that the “Manner of service of summons and notices issued by the Board under regulation 11A is defined in the regulation itself earlier the summons and notices were issued as per regulation 22 of the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002. There are a few changes made in regulation 12 also related to suspension or cancellation of registration of the intermediary.

Click Here To Read The Full Notification

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied