Latest News | Sebi Bans Madhav Stock Vision, Others for Alleged Front-running

New Delhi, Apr 23 (PTI) Markets regulator Sebi on Wednesday barred stock broker Madhav Stock Vision (MSVPL) from trading in securities using its proprietary account for allegedly involving in front-running trades.

Additionally, the regulator has restrained five individuals from buying, selling, or dealing in any securities, directly or indirectly, according to an interim order.

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Also, Sebi has directed disgorgement of Rs 2.73 crore illegal gains made by the six entities.

A probe conducted by Sebi found that that Madhav Stock Vision front-ran trades placed by the Big Client through four different stock brokers, who are registered members of both the NSE and BSE.

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The order followed an investigation covering the period from April 1, 2020, to December 1, 2023 conducted by Sebi. The purpose was to examine alleged front-running -- illegal trading ahead of large orders-- involving a major institutional investor referred to as the Big Client.

Front-running refers to an illegal practice in the stock market where an entity trades based on advanced information from a broker or analyst before the information has been made available to its clients.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)