Business

Month's ban on participants in case of market abuse


New Delhi, March 15 (IANS): Financial market participants will be barred from trading for around a month if found guilty of market abuse, the RBI said on Friday.

In the Reserve Bank of India (Prevention of Market Abuse) Directions, 2019 released during the day, the central bank noted that 'market abuse' includes market manipulation, benchmark manipulation, misuse of information and other such practices.

The directions would come into force with immediate effect, the RBI said.

"Market participants committing market abuse are liable to be denied access to markets in one or more instruments for a period that may not exceed one month at a time," the notification said.

"No such action shall be taken by the bank without providing reasonable opportunity to the market participant to defend its actions. All instances of such action shall be made public by the bank."

According to the directions, a market participant who is in possession of 'non-public price-sensitive information' should not use it for any material benefit to itself or to others.

"Market participants shall not use 'price-sensitive customer information' for transacting on their own account in a manner that adversely affects the outcome for the customer in that (those) transaction(s). They shall maintain confidentiality of price-sensitive customer information," it said.

Further, the central bank mandated the participants to report any detected instance or attempt of market abuse to the bank promptly.

No market participant should carry out a transaction or initiate any action with the sole or dominant intention of influencing a benchmark rate or a reference rate, it said.

The the directions have been released after reviewing public comments on the draft directions were made public on September 28, 2018.

Leave a Comment

Title : Month's ban on participants in case of market abuse


 
 
 
 

 
You have 2000 characters left.

Disclaimer:

Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. Daijiworld.com will not be responsible for any defamatory message posted under this article.

Please note that sending false messages to insult, defame, intimidate, mislead or deceive people or to intentionally cause public disorder is punishable under law. It is obligatory on Daijiworld to provide the IP address and other details of senders of such comments, to the authority concerned upon request.

Hence, sending offensive comments using daijiworld will be purely at your own risk, and in no way will Daijiworld.com be held responsible.


Security Validation

Enter the characters in the image