{"id":91923,"date":"2018-09-28T20:15:55","date_gmt":"2018-09-28T20:15:55","guid":{"rendered":"http:\/\/www.bnreport.com\/rbi-draft-warns-of-punitive-action-for-market-abuse\/"},"modified":"2018-09-28T20:15:55","modified_gmt":"2018-09-28T20:15:55","slug":"rbi-draft-warns-of-punitive-action-for-market-abuse","status":"publish","type":"post","link":"https:\/\/www.bnreport.com\/en\/rbi-draft-warns-of-punitive-action-for-market-abuse\/","title":{"rendered":"RBI draft warns of punitive action for market abuse"},"content":{"rendered":"<p>MUMBAI: The Reserve Bank Friday issued the draft guidelines on prohibiting market abuse which propose to debar errant participants from accessing the market. <\/p>\n<p>&quot;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,&quot; the draft guidelines said. <\/p>\n<p>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 <a href=\"https:\/\/economictimes.indiatimes.com\/topic\/central-bank\" rel=\"noreferrer\" target=\"_blank\">central bank<\/a> said in a statement. <\/p>\n<p>The directions, called the <a href=\"https:\/\/economictimes.indiatimes.com\/topic\/Reserve-Bank-of-India\" rel=\"noreferrer\" target=\"_blank\">Reserve Bank of India<\/a> (<a href=\"https:\/\/economictimes.indiatimes.com\/topic\/Prohibition-of-Market-Abuse\" rel=\"noreferrer\" target=\"_blank\">Prohibition of Market Abuse<\/a>) Directions 2018 define what is <a href=\"https:\/\/economictimes.indiatimes.com\/topic\/market-manipulation\" rel=\"noreferrer\" target=\"_blank\">market manipulation<\/a>, benchmark manipulation and misuse of information as well. <\/p>\n<p>Market participants shall not obtain, or attempt to obtain, or share any unpublished price sensitive information, the central bank said, adding they shall also not use price sensitive customer information for trading on own account or on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. <\/p>\n<p>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. <\/p>\n<p>The RBI has invited public comments on the draft guidelines by October 31.  <\/p>\n<p><strong><a href=\"https:\/\/blockads.fivefilters.org\/\" rel=\"noreferrer\" target=\"_blank\"><\/a><\/strong> <a href=\"https:\/\/blockads.fivefilters.org\/acceptable.html\" rel=\"noreferrer\" target=\"_blank\"><\/a><\/p>\n<p><a href=\"https:\/\/economictimes.indiatimes.com\/markets\/stocks\/news\/rbi-draft-warns-of-punitive-action-for-market-abuse\/articleshow\/65999280.cms\" rel=\"noreferrer\" target=\"_blank\">Original Article<\/a><\/p>\n<p>[contf]<br \/>\n[contfnew]<br \/>\n        <img decoding=\"async\" src=\"https:\/\/img.etimg.com\/photo\/60278104.cms\"\/><\/p>\n<h5><a href=\"https:\/\/economictimes.indiatimes.com\/\" rel=\"noreferrer\" target=\"_blank\">ET Markets<\/a><\/h5>\n<p>[contfnewc]<br \/>\n[contfnewc]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>MUMBAI: The Reserve Bank Friday issued the draft guidelines ..<\/p>\n","protected":false},"author":1,"featured_media":91924,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[202],"tags":[],"class_list":["post-91923","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - 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