Business Today
Loading...

IIFL AMC suspends service of employee caught by Sebi in front running case

It has also instructed Singh to fully co-operate in the enquiry as well as Sebi investigations and provide all requisite information

twitter-logoPTI | October 5, 2020 | Updated 10:16 IST
IIFL AMC suspends service of employee caught by Sebi in front running case
According to Sebi, IIFL Wealth houses the management of all the mutual fund schemes, portfolio management services and alternative investment funds offered by the IIFL Group

IIFL Asset Management Company (AMC) on Sunday said it has suspended the services of its employee, Santosh B Singh, named by markets regulator Sebi in a front running case. Besides, it has initiated an internal enquiry into the conduct and functioning of the employee, taking into account the information and findings of Sebi, the asset management company said in a statement.

It has also instructed Singh to fully co-operate in the enquiry as well as Sebi investigations and provide all requisite information. On Thursday, the Securities and Exchange Board of India (Sebi) barred an IIFL employee, Santosh B Singh, and five connected entities from the capital markets for front running the trades of IIFL AMC and several alternative schemes managed by IIFL Wealth Management using 'mule' accounts, it said.

According to Sebi, IIFL Wealth houses the management of all the mutual fund schemes, portfolio management services and alternative investment funds offered by the IIFL Group. Front running, in market parlance, refers to buying or selling securities ahead of a major transaction in order to benefit from the subsequent price movement.

Keeping in view the order and seriousness of finding, IIFL AMC said it has suspended the services of Singh with immediate effect. IIFL AMC said it has in place necessary systems, processes and controls as per regulatory requirements including risk management systems, code of conduct, among others.

"We have taken serious note of Sebi order and finding and have initiated immediate internal review and further strengthening of system, processes and controls," it said. The AMC said it will extend full co-operation to Sebi in its investigation and will further update the regulator on its findings and review.

Youtube
  • Print

  • COMMENT
BT-Story-Page-B.gif
A    A   A
close