Business Standard

Corporate fraud is finally securities fraud

The regulator can no longer be selective about the cases in which it would flex its muscle and those in which it would plead an absence of power

BSE, sensex, market, shares, stocks, trading, brokers, investment, investors, growth, results, Q, earnings

Somasekhar Sundaresan
It has taken a long time coming — but after 28 years, finally it’s here. The Securities and Exchange Board of India (Sebi) has notified an amendment to regulations prohibiting fraudulent and unfair trade practices to include fudging of accounts of listed companies as a fraudulent practice relating to securities markets.

The regulations have been amended to clarify that “any act of diversion, misutilisation or siphoning off of assets or earnings of a company whose securities are listed” shall be deemed to have been considered as manipulative, fraudulent and an unfair trade practice in the securities market. Likewise, “any concealment of
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Oct 20 2020 | 11:59 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to