AIR 2018 SC (Supp) 801 ::AIROnline 2018 SC 587 ::(2018) 2 Scale 156 ::2018 (13) SCC 753 ::2019 (132) ALR SOC 30 (SC) ::AIR 2018 SC (SUPP) 801 ::2018 (192) AIC (SOC) 7 (SC) ::(2018) 2 All WC 1989 ::(2018) 3 Bom CR 192 ::(2018) 3 BankCas 302

Supreme Court Of India

Hon'ble Judge(s): Kurian Joseph, R. Banumathi , JJ

(A) Securities and Exchange Board of India Act (15 of 1992) , S.12A, S.30— Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations (2003) , Regn.3(a), Regn.4(1), Regn.4(2)(a), Regn.2(1)(c)— Fraudulent trade practices - By traders - Determination - Traders allegedly executing reversing transactions both profits and loss at abnormal price differences - No commercial basis to suddenly execute reverse transactions in absence of market manipulation - Traders trading for loss in pre-planned manner, non-transfer @page-SC802of beneficial ownership of trades and when trades not synchronizing, traders placing at unattractive prices - Indicating restriction on free and fair operation of market forces resulting in unfair/fraudulent trade practice - Traders liable to be proceeded against for violations of regulations. Dealings in stock exchange are governed by principles of fair play and transparency, one does not have to labour much on meaning of unfair trade practices in securities. Contextually and in simple words, it means practice which does not conform to fair and transparent principles of trades in stock market. In instant case, one party booked gains and other party booked loss. Nobody intentionally trades for loss. Intentional trading for loss per se, is not genuine de....