SEBI gets cracking on front running cases

The Securities and Exchange Board of India (SEBI) has passed final orders in matters related to front-running while banning former dealers of IIFL Group and Fidelity Group.

In two separate orders issued on Friday, the capital market regulator barred the former dealer of IIFL Group for five years while that of Fidelity Group was banned from the securities market for a period of two years.

In the case of the former dealer of IIFL Group, the regulator has also banned him from being associated with any SEBI-registered intermediary. He has also been barred from being associated with any listed company or any other company that intends to raise money from the public.

In both the matters, SEBI has already issued interim orders and Friday saw the passing of the final orders. While the IIFL matter probed trades done between December 2019 and October 2020, the Fidelity Group matter investigated transactions executed from February 2019 to November 2019.

In the case of IIFL Group, its former dealer Santosh Brijraj Singh was found guilty of executing “front running trades” while passing information to his friend - Adil Gulam Suthar - who was formerly a sub broker with Angel Broking.

Meanwhile, Vaibhav Dhadda (alias Avi Dhadda), a former employee of Fidelity International and the trader for 21 funds of the Fidelity Group along with his relatives Alka and Arushi were found guilty of front running.

In both the orders, certain other individuals have also been either penalised or barred from the markets after being identified as front runner account holders.