An investor proposes to make a complaint about certain groups of individuals who engage in the trading of securities by adopting manipulative practices. The investor does not know to which authority he can make the compl

Note for the Investor: Complaint against Manipulative Practices in Securities Trading Dear Investor, This note explains how you can make a complaint regarding manipulative practices in securities trading. 1. Law and Authority for Complaint: Your complaint should be made to the Securities and Exchange Board of India (SEBI) under the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (the Regulations) . SEBI is the primary regulator for the Indian securities market and is empowered to investigate and act upon such complaints. 2. Circumstances for Making a Complaint (Prohibitions under Regulation 3): You can make a complaint if you observe any person, directly or indirectly, engaging in the following manipulative, fraudulent, or unfair trade practices: Fraudulent Dealing: Buying, selling, or otherwise dealing in securities in a fraudulent manner. Manipulative/Deceptive Devices: Using or employing, in connection with issue, purchase or sale of any security listed or proposed to be listed in a recognized stock exchange, any manipulative or deceptive device or contrivance in contravention of the provisions of the SEBI Act or rules/regulations made thereunder. Artifice to Defraud: Employing any device, scheme, or artifice to defraud in connection with dealing in or issue of securities which are listed or proposed to be listed on a recognized stock exchange. Fraud/Deceit in Business: Engaging in any act, practice, or course of business which operates or would operate as fraud or deceit upon any person in connection with any dealing in or issue of securities which are listed or proposed to be listed on a recognized stock exchange in contravention of the provisions of the SEBI Act or rules/regulations made thereunder. If the actions you have observed fall into any of these categories, you have grounds to file a complaint. 3. Type of Actions that May Be Taken by SEBI (Regulation 11(1)): Upon receiving a complaint and after due investigation or enquiry, SEBI may, in the interests of investors and the securities market, issue or take any of the following actions or directions: Suspend Trading: Suspend the trading of the security found to be involved in fraudulent and unfair trade practice. Restrain Access: Restrain persons from accessing the securities market and prohibit them from buying, selling, or dealing in securities. Suspend Office-Bearer: Suspend any office-bearer of any stock exchange or self-regulatory organization from holding such position. Impound/Retain Proceeds: Impound and retain the proceeds or securities in respect of any transaction in violation of these regulations. Direct Intermediary Not to Dispose Assets: Direct an intermediary or any person associated with the securities market not to dispose of or alienate an asset forming part of a fraudulent and unfair transaction. Require Officers to Refrain from Dealing: Require the person concerned to call upon any of its officers, other employees, or representatives to refrain from dealing in securities in any particular manner. Prohibit Disposal of Securities: Prohibit the person concerned from disposing of any securities acquired in contravention of these regulations. Direct Disposal of Securities: Direct the person concerned to dispose of any such securities acquired in contravention of these regulations, in such manner as SEBI may deem fit, for restoring the status quo ante. You should gather all available evidence (transaction details, communications, public statements, etc.) to support your complaint. SEBI has an online complaint redressal system (SCORES) where you can file your complaint. Sincerely, CSprep Specialist