BNS Section 326 - Securities Fraud

Whoever commits fraud in relation to securities trading, including insider trading, market manipulation, or fraudulent securities practices.

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Non-bailable, Cognizable

Official Text

Whoever commits fraud in relation to securities trading, including insider trading, market manipulation, or fraudulent securities practices.

Legal Analysis

Elements to Prove:

  • Fraud in securities trading.
  • Insider trading or market manipulation.
  • Intent to deceive.
  • Financial gain from fraud.

Potential Defenses:

  • No securities fraud.
  • Legitimate trading.
  • Authorized activities.

Practical Examples

What Constitutes the Offense:

Insider trading, market manipulation, fake securities, fraudulent trading.

What Doesn't Constitute:

Legitimate trading, authorized securities, or lawful market activities.

Punishment

Imprisonment up to 7 years, and Fine