SEBI uncovers the front-running racket by Reliance Security dealers
A major front running racket was exposed by the Securities and Exchange Board of India (SEBI) and has locked 27 entities connected to dealers at Reliance Securities Ltd (RSL) on the basis of violation of its PFUTP (Prohibition of Fraudulent and Unfair Trade Practices). It has found a link between some RSL individual dealers and entities who were resting on prior access to buy and sell orders by Tata Absolute Return Fund.
The alerts were raised against Meena Ramnilal Vira, mother of Harshal Vira, a dealer at RSL in December 2019 and January 2020 as a suspect for this front-running racket. The main reason for such vigilance was the suspected front-running trades of the Tata Absolute Return Fund, a scheme of Tata Alternative Investment Fund.
SEBI’s internal surveillance team has made regular follow-ups with an examination of KYC details, call data records, social media tracks, and Facebook links of the suspected individuals as well as entities to investigate relationships between individuals and several entities related to the racket scrutiny.