MII to formulate code to prevent fraud & market abuse:SEBI
SEBI in its circular stated that stock exchanges, clearing corporations and depositories adopt a code of conduct and an institutional mechanism to prevent fraud or market abuse by these market infrastructure institutions (MIIs). The new code will be on the lines of its insider trading rules and will be framed by the managing director or the chief executive officer and the board of directors will have to ensure compliance with the code by the MD and CEO. Every MII should have to identify and designate a compliance officer to administer this code of conduct by its MD/CEO.
If MII found any illegal or unethical practices or transactions of suspected fraud or market abuse by its designated persons or immediate relatives of designated persons and promptly informed its Board of Directors of such suspected fraud or market abuse and results of the inquiry.
