SEBI Bans 12 Entities for 5 Years in Front-Running Case, Imposes ₹90 Lakh Fine
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Moneycontrol•17-01-2026, 11:40
SEBI Bans 12 Entities for 5 Years in Front-Running Case, Imposes ₹90 Lakh Fine
- •SEBI has banned 12 entities from the securities market for 5 years due to their involvement in front-running.
- •A total fine of ₹90 lakh has been imposed, and they must deposit illegal gains of ₹1.07 crore with 12% annual interest.
- •Front-running is an illegal practice where entities use prior inside information about large deals to profit from share price changes.
- •Paresh N Bhagat, Chairman of Mangal Keshav Financial Services, and his dealers Ashish S Parekh and Rajesh Joshi were found to have shared Non-Public Information (NPI).
- •This NPI was used by Nagendra S Dubey and Chirag Atul Pithadia to place orders in connected entities' accounts before the large client's orders, constituting fraudulent trade practices.
Why It Matters: SEBI has taken strict action against 12 entities for front-running, banning them for 5 years and imposing heavy fines.
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