Antique Stock Broking settles suspected front-running case with Sebi for Rs 22.44 lakh

The Securities and Exchange Board of India (Sebi) has issued settlement order against Antique Stock Broking Limited in connection with suspected front-running of trades of a large client by the Chaturvedi Group. Sebi had investigated trades executed between January 1, 2022, and December 8, 2023, to examine whether the group front-ran orders of a major institutional client. During the probe, it was alleged that Antique Stock Broking, as the registered broker, failed to exercise due skill and care by not enforcing its policy restricting mobile phones inside the dealing room and by not maintaining proper order placement records for the client. Settlement order mentioned that as per show cause notice, “it was alleged that the Applicant failed to exercise due skill and care of its conduct as a registered stock broker as it did not ensure compliance of its own internal policy of not allowing mobile phones inside the dealing room and did not maintain record of order placements by the Big Client”. Following the issuance of a show cause notice on February 20, 2025, Antique Stock Broking applied for settlement without admitting or denying the allegations. After discussions with Sebi’s Internal Committee and review by the High-Powered Advisory Committee (HPAC), the broker agreed to pay a settlement amount of Rs 22.44 lakh. In a similar settlement order related to the same client group, Motilal Oswal Financial had settled case with Sebi by paying an amount of Rs 34.85 lakh, the case was related to an authorised person of the brokerage firm. Under the settlement regulations, parties settle the case without admitting or denying the guilt and by paying an amount determined by the regulator as per a formula.

The Securities and Exchange Board of India (Sebi) has issued a settlement order against Antique Stock Broking in connection with suspected case involving front-running of trades of a large client by the name of Chaturvedi Group.

Sebi had investigated trades executed between January 1, 2022, and December 8, 2023, to examine if the group front-ran orders of a major institutional client. During the probe, it was alleged that Antique Stock Broking, as the registered broker, failed to exercise due skill and care by not enforcing its policy restricting mobile phones inside the dealing room and by not maintaining proper order placement records for the client.

Santosh Shukla, the Quasi Judicial Authority with Sebi wrote in the settlement order that as per show cause notice, it was alleged that the Applicant "failed to exercise due skill and care of its conduct as a registered stock broker as it did not ensure compliance of its own internal policy of not allowing mobile phones inside the dealing room and did not maintain record of order placements by the Big Client."

Following the issuance of a show cause notice on February 20, 2025, Antique Stock Broking applied for settlement without admitting or denying the allegations. After discussions with Sebi’s Internal Committee and review by the High-Powered Advisory Committee (HPAC), the broker agreed to pay a settlement amount of Rs 22.44 lakh.

Also Read: Motilal Oswal Financials settles Sebi probe in suspected front-running case for Rs 34.85 Lakh

In a similar settlement order related to the same client group, Motilal Oswal Financial had settled case with Sebi by paying an amount of Rs 34.85 lakh, in a case related to an authorised person of the brokerage firm.

Under the settlement regulations, parties settle the case without admitting or denying the guilt and by paying an amount determined by the regulator as per a formula.