Section 116: False or misleading conduct in relation to securities

116. False or misleading conduct in relation to securities (1) Any person who engages in conduct in relation to securities that is misleading or deceptive or is likely to mislead or deceive shall commit an offence. (2) Where a person engages in conduct in relation to securities— (a) that the person knows is misleading or deceptive or is likely to mislead or deceive; or (b) where the person is reckless as to whether the conduct is misleading or deceptive or is likely to mislead or deceive, he shall commit an offence and shall, on conviction, be liable to a fine of not less than 500,000 rupees together with imprisonment for a term of not less than one year. (3) For the purposes of this section, “conduct” includes making a statement that is false or misleading or omitting a material fact.