- by Stocktry Expert
- 12th Aug 2020
Sebi bans 27 entities in the matter of front running by Reliance Securities dealers
Regulator Sebi has barred several individuals and entities from the capital market after it unearthed a major case of front running by some dealers of Reliance Securities Ltd and their connected entities by using their prior access to sell and buy orders by Tata Absolute Return Fund.
These alerts referred to the suspected front running of trades by Tata Absolute Return Fund, a scheme of Tata Alternative Investment Fund, while some more front running alerts were generated against some other entities suspected to be front running the trades of the same big client.
After Sebi further probed the matter it found that the majority of the orders of the big client were being placed through Reliance Securities Ltd and these orders were being placed through four dealers at the brokerage firm.
Sebi said these three dealers --Harshal Ramnik Vira, Bhavesh Gandhi and Abhijeet Nandkumar Jain -- were privy to the nonpublic information to impending orders of Big client. Besides, connected entities too had access to such information.
Sebi said dealers and connected entities in nexus with registered owners of trading accounts of front-running have placed orders of the first leg of their intra-day trade just before the order /last tranche of the order of big client consistently.
Accordingly, Sebi has barred a total of 27 entities including Vira, Gandhi, and Jain from the capital markets for violation of its PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms till further directions.
All the entities have been directed not to dispose of any assets, whether immovable or movable except with the prior permission of Sebi.
The directions will take effect immediately and will be in force until further orders.