The Supreme Court has asked SEBI to deal sternly with companies indulging in manipulative and deceptive practises. The apex court wanted SEBI to send a clear message that market abuse will not be tolerated in the country.The bench also asked the media not to mislead the public in their forecast on the securities market.

A bench comprising justices K S Radhakrishnan and Dipak Misra said the market regulator has to deal sternly with companies and their Directors indulging in manipulative and deceptive devices, insider trading and other malpractices. Or else they will be failing in their duty to promote orderly and healthy growth of the Securities market, the bench observed. The bench said SEBI should ensure that fraud, deceit and artificiality have no place in the securities market. Market security is our motto,” the apex court said.

The ruling assumes importance as it has come at a time when chit-fund companies and Sahara group are making headlines for illegally collecting money from people by promising attractive returns. It will give a boost to the market regulator to deal with these companies with iron hands.