Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) (Amendment) 2012 - LAD-NRO/GN/2012-13/25/5455 - SEBI

SECURITIES AND EXCHANGE BOARD OF INDIA NOTINCATION Mumbai. the 11 th December, 2012 Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) (Amendment) 2012 No. LAD-NRO/GN/2012-13/25/5455.- In exercise of the powers conferred by Section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992) , the Board hereby makes the following Regulations to further amend the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 , namely : 1. These Regulations may be called the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) (Amendment) Regulations, 2012 2. They shall come into force on the date of their publication in the Official Gazette 3. In Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 , in regulation 4, in sub-regulation (2) , after the clause (r), the following clause and explanation shall be inserted, namely : - (s) mis-selling of units of a mutual fund scheme: Explanation . -For the purpose of this clause, mis-selling means sale of units of a mutual fund scheme by any person. directly or indirectly, by- (i) making a false or misleading statement, or (ii) concealing or omitting material facts of the scheme, or (iii) concealing the associated risk factors of the scheme, or (iv) not taking reasonable care to ensure suitability of the scheme 10 the buyer. U.K. SINHA, Chairman [ADVT. III/4/69-ZB/12/Exty.] Footnote.- 1. The SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003, were published in the Gazette of India on July 17, 2003 vide No. S.O 816(E). 2. The SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003, was subsequently amended on April, 23, 2007 by SEBI (Manner of Service of Summons and Notices Issued by the Board) (Amendment) Regulations, 2007 vide No. SEBI/LAD/DOP/2232/2007.