Financial and Securities Market

Securities, Equities & Derivatives

Nature & Scope

Financial and securities market cases
Financial and securities market cases involve legal issues related to financial transactions, investments, and the regulation of securities markets. These cases typically arise in the context of banking, investment, and securities activities. Here are some common types of financial and securities market cases:

Securities Fraud:

Cases involving fraudulent activities in the purchase or sale of securities, such as misrepresentation, insider trading, market manipulation, Ponzi schemes, and other deceptive practices.

Investment Disputes:

Disputes arising from investments, including claims of unsuitability, misrepresentation, churning (excessive trading for the purpose of generating commissions), unauthorized trading, and failure to disclose material information.

Broker-Dealer Disputes:

Cases involving disputes between investors and brokerage firms, including allegations of negligence, breach of fiduciary duty, failure to supervise, unauthorized trading, and improper handling of customer accounts.

Regulatory Enforcement Actions:

Cases brought by regulatory authorities, such as the SEBON, NRB, BEEMA SAMITI or other financial regulatory bodies, alleging violations of securities laws, rules, and regulations.

Securities Class Actions:

Lawsuits filed on behalf of a group of investors who have suffered financial losses due to alleged securities law violations. These cases typically involve claims of false or misleading statements in public disclosures or prospectuses.

Insider Trading:

Cases involving the illegal trading of securities based on material non-public information by individuals with access to confidential information about a company.

Investment Fraud:

Cases involving scams or schemes that defraud individuals or organizations through false promises of high investment returns, such as affinity fraud, pyramid schemes, or advance-fee fraud.

Breach of Fiduciary Duty:

Cases where a fiduciary, such as a financial advisor or trustee, is alleged to have breached their legal duty to act in the best interests of their clients or beneficiaries.

Ponzi Scheme Recovery:

Cases involving efforts to recover funds for victims of Ponzi schemes, where funds from new investors are used to pay returns to earlier investors.

Market Manipulation:

Cases involving illegal activities aimed at artificially influencing the price or value of securities, such as manipulating stock prices, creating false demand, or engaging in wash trading.

Equities, securities, and derivatives markets are regulated by various laws and regulations to ensure fairness, transparency, and investor protection. Here are the key legal issues and compliance requirements associated with these financial instruments:


  1. Securities Laws and Regulations:
    • Compliance with securities laws, Commodity Exchange act and other relevant laws, those regulate the issuance and trading of equities and derivatives.
    • Adherence to rules set by the SEBON to protect investors and maintain fair, orderly, and efficient markets.
  2. Insider Trading:
    • Compliance with laws prohibiting insider trading, which involves trading securities based on material, non-public information.
  3. Proxy Voting and Shareholder Rights:
    • Ensuring compliance with regulations governing proxy voting and shareholder rights, which allow shareholders to participate in corporate decision-making.
  4. Corporate Governance:
    • Compliance with regulations and best practices related to corporate governance to maintain transparency and accountability to shareholders.
  5. Market Manipulation:
    • Compliance with laws prohibiting market manipulation, such as artificially inflating or deflating security prices.


  1. Regulatory Compliance:
    • Compliance with laws and regulations regarding the issuance, sale, and trading of various types of securities, including stocks, bonds, and mutual funds.
  2. Disclosure Requirements:
    • Adherence to regulations that mandate disclosures to investors about the risks and characteristics of securities being offered or traded.
  3. Investor Protection:
    • Ensuring that securities offerings are conducted in a manner that protects investors from fraudulent or deceptive practices.
  4. Securities Exchange Compliance:
    • Compliance with the rules and requirements of securities exchanges where securities are listed for trading.


  1. Derivatives Regulations:
    • Compliance with laws and regulations that govern the trading and use of derivative instruments such as options, futures, swaps, and forwards.
  2. Risk Management:
    • Adherence to regulations related to risk management and reporting requirements for derivative transactions.
  3. Derivatives Trading Compliance:
    • Compliance with exchange rules and regulations governing the trading, clearing, and settlement of derivative contracts.
  4. Central Clearing and Reporting:
    • Compliance with requirements for central clearing and reporting of derivative transactions to regulatory authorities.
  5. Margin Requirements:
    • Adherence to regulations related to margin and collateral requirements for derivative transactions, ensuring adequate capital to cover potential losses.
  6. Complexity and Disclosure:
    • Derivatives often involve complex financial products. Compliance includes providing adequate disclosures and risk explanations to investors.

It’s important to note that financial and securities laws and regulations can vary by jurisdiction. If you have concerns or questions regarding financial or securities market cases, it’s recommended to consult with an experienced Lawyer or legal professional who specializes in this area of law.

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