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A. INTRODUCTION
The SEBI Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market Regulations 2003, commonly referred to as PFUTP Regulations, were introduced as a direct response to systemic weaknesses observed during the late 1990s and early 2000s pertaining to market manipulation, to meet its objective of preserving market integrity, ensuring investor protection, and promoting transparency in India’s securities markets.
These regulations are broad in scope having mix of principle and rule-based approach. It applies to all market participants whether individuals, entities, or intermediaries, and are designed to curb manipulative, deceptive, or unethical conduct in connection with securities trading, public offerings, and disclosures. It prohibits person from buying, selling or otherwise dealing in securities in fraudulent manner by using any manipulative or deceptive device.
The term "fraud" under PFUTP is defined expansively to “include any act, expression, omission or concealment committed whether in a deceitful manner or not by a person or by any other person with his connivance or by his agent while dealing in securities in order to induce another person or his agent to deal in securities, whether or not there is any wrongful gain or avoidance of any loss, and sh
