SEBI (Prohibition of Unexplained Suspicious Trading Activities) Regulations: An Indeterminate Shifting of Evidentiary Burden?

Dear Connections

I am glad to inform you that the article "SEBI PUSTA Regulations: An Indeterminate Shifting of Evidentiary Burden?", co-authored by Jay Shah and me, has been published in the Indian Review of Corporate and Commercial Laws (IRCCL). The article critically analyses the recent draft SEBI (Prohibition of Unexplained Suspicious Trading Activities) Regulations 2023, introduced through a consultation paper dated May 18, 2023. The Regulations aim to deal with suspicious trading patterns in the presence of material non-public information by shifting the onus of proof on the accused.

Through the article, we have highlighted specific challenges with the SEBI PUSTA Regulation regarding shifting the evidentiary burden on mere suspicion without establishing any foundational facts or causal nexus and how it goes against the jurisprudence held by SC in the landmark judgements of Balram Garg v. SEBI and Seema Silk & Sarees v. Directorate of Enforcement.

Please click here to access the article. I would be glad to hear any comments/suggestions you may have.

Thank you?