Versions

 

"Fraud"

Includes:

(a) Any act, expression, omission or concealment committed, whether in a deceitful manner or not by a person or by any other person with his connivance or by his agent while dealing in securities, in order to induce another person or his agent to deal in securities, whether or not there is any wrongful gain or avoidance of any loss, and shall also include:
(i) A knowing misrepresentation of the truth or concealment of material fact in order that another person may act to his detriment;
(ii) A suggestion as to a fact which is not true by one who does not believe it to be true;
(iii) An active concealment of a fact by a person having knowledge or belief of the fact;
(iv) A promise made without any intention of performing it;
(v) A representation made in a reckless and careless manner whether it be true or false;
(vi) Any such act or omission as any other law specifically declares to be fraudulent;
(vii) Deceptive behaviour by a person depriving another of informed consent or full participation; (viii) A false statement made without reasonable ground for believing it to be true;
(ix) The act of an issuer of securities giving out misinformation that affects the market price of the security, resulting in investors being effectively misled even though they did not rely on the statement itself, or anything derived from it other than the market price;
and "fraudulent" shall be construed accordingly, nothing contained in this paragraph shall apply to any general comments made in good faith in regard to:
(a) The economic policy of the government;
(b) The economic situation of the country;
(c) Trends in the securities market; or
(b) Any other matter of a like nature.
Added: July 2011