INSUBCONTINENT EXCLUSIVE:
MUMBAI: The Reserve Bank Friday issued the draft guidelines on prohibiting market abuse which propose to debar errant participants from
accessing the market.
"Participants found guilty of market abuse may be subject to regulatory action, including temporary or permanent
stoppage of access to the markets in one or more instruments," the draft guidelines said.
It has been proposed that the directions will
apply to all market participants for financial instruments but shall not apply to transactions or other activities being carried on in
furtherance of public policy objectives, the central bank said in a statement.
The directions, called the Reserve Bank of India (Prohibition
of Market Abuse) Directions 2018 define what is market manipulation, benchmark manipulation and misuse of information as well.
Market
participants shall not obtain, or attempt to obtain, or share any unpublished price sensitive information, the central bank said, adding
they shall also not use price sensitive customer information for trading on own account or on account of any other entity.
It also said they
should not intentionally create or transmit false or inaccurate information that influences price
They should also not use any mass media with an intention to influence price of a financial instrument.
The RBI has invited public comments
on the draft guidelines by October 31
