Report: Sebi Intensifies Scrutiny of Broker Dealing Rooms Over Front-Running Worries

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Sebi Intensifies Scrutiny of Broker Dealing Rooms Amid Front-Running Concerns

Officials are also verifying whether the individual placing or relaying an order was permitted to use the chosen channel and whether the communication timestamps align precisely with the executed trades

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Moneycontrol•26-02-2026, 10:29

Sebi Intensifies Scrutiny of Broker Dealing Rooms Amid Front-Running Concerns

•India's capital markets watchdog, Sebi, is stepping up oversight of stockbrokers' dealing room operations.
•The move is part of a broader crackdown on front-running, where employees misuse advance knowledge of large pending trades.
•Sebi and stock exchanges have conducted inspections at several brokerage firms, focusing on institutional and HNI dealing desks.
•Regulators are assessing if each trade can be traced to original client instructions, examining access controls and software platforms.
•Sebi is seeking full audit trails for transactions, including originating instructions via recorded lines, emails, or approved messaging systems.

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