Case Law Analysis
|Supreme Court of India
PFUTP Regulations | Fraud Requires Proof of Inducement to Trade; Market Cornering Alone Is Insufficient : SC
The Supreme Court has ruled that under the PFUTP Regulations, mere position cornering or breach of trading limits does not amount to securities fraud unless there is evidence the manipulative activity induced investors to buy or sell. This sets a critical precedent for SEBI enforcement, requiring regulators to prove deceptive intent - not just market distortion - to establish fraud.