In the last Board meeting of Blue Gems Limited, a listed company with National Stock Exchange, one of its Director suggested that under the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securitie

CS Executive · Capital Market and Securities Laws · PYQS · December 2025
In the last Board meeting of Blue Gems Limited, a listed company with National Stock Exchange, one of its Director suggested that under the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 certain acts/transactions are not considered as 'Fraud'. He suggested you, to elaborate.

Answer & Explanation:

Under Regulation 2 (1) (c) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003, certain exceptions have been provided to the term 'Fraud' and states that nothing contained in the clause shall apply to any general comments made in good faith in regards to: the economic policy of the government the economic situation of the country trends in the securities market, or any other manner of a like nature whether such comments are made in public or in private.

Topics: Fraudulent and Unfair Trade Practices

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