Wednesday, September 11, 2013

Amendments to SEBI’s FUTP Regulations Effective

In previous posts (here, here and here), we had discussed issues that had arisen under the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to the Securities Market) Regulations, 2003 (the FUTP Regulations), particularly in the context of front running. We had also discussed SEBI’s proposal to amend the FUTP Regulations to expand the scope of front running and also to bring in illegal Ponzi schemes within their scope so as to constitute a fraudulent practice.

One of our regular readers has brought to our attention that SEBI has notified amendments to the FUTP Regulations effective September 6, 2013. A copy of the gazette notification is available here, while the background memoranda issued by SEBI stating the rationale for the amendments are available here and here.

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