SEBI Bars 13 Individuals for Front-Running Trades, Imposes Penalties
India’s markets regulator, the Securities and Exchange Board of India (SEBI), has barred 13 individuals from participating in the securities market after finding them guilty of front-running trades placed by three trusts. Front running involves trading stocks or other assets based on insider knowledge of upcoming transactions, giving traders an unfair advantage.
The investigation covered the period from January 1, 2021, to October 31, 2022, and focused on trades related to the Bharat Kanaiyalal Sheth Family, Ravi Kanaiyalal Sheth Family, and Arjun Discretionary Trust. SEBI found that these individuals executed trades in shares before the trusts’ transactions were carried out, violating market regulations and compromising market integrity.
In addition to banning the individuals, SEBI imposed financial penalties ranging from 500,000 rupees to 1.5 million rupees ($5,688.61 to $17,065.82) for the illegal gains made through these activities. The regulator’s action underscores its commitment to maintaining fair trading practices and deterring insider trading in India’s financial markets.
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