Legal Question in Criminal Law in India

Unfair Trade Practices Relating To Stock Market

SEBI (Prohibition of fraudulent and unfair trade practices relating to securities market) Regulations,1995.This regulation is made by SEBI.The transaction pertaining to capital markets are govern by stock exchange & SEBI.SEBI for a fair & transparent market bring regulations covering various aspects of trading and occurs unfair,manupalitive & fraud transactions.Ref.to section 2,defines fraud & the investigation of fraud transaction by the SEBI board.Methods of investigation is provided in regulation 7 to 13.Hence it is SEBI,which governs the capital market,passes an order for fraud which is then appeable.Only such transaction are covered under regulations 3 & 4 of this act.I want to know,what powers the court has to pass the order in absence of no investigation carried out by the SEBI board.How can the court say citing the said regulation,that the trade relating to stock market are prohibited and unfair,without been investigated by SEBI board as per power granted to them vide this regulations.How can i argue before the court,that the court has got no power to pass any order on the basis of this regulation and in absence of any investigation by SEBI board & decalre my transaction as ''Not legally enforceable transaction''.


Asked on 1/10/07, 12:32 am

1 Answer from Attorneys

Re: Unfair Trade Practices Relating To Stock Market

ALL the documents pertaining to case is required to be examined.There might be a complaint case before the court in which the court has pass the order after giving the said observation.You may challenge the jurisdiction of the court and say that in absence of investigation there is no ground before court to give said observation.

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Answered on 1/10/07, 3:36 am


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