Front Running

Salgaocar’s petition also says that SEBI’s interim order has damaged his reputation and is threatening his livelihood. Matter is pending before SAT for hearing.

Sebi Special Court rejects Ketan Parekh’s plea to travel abroad

Interestingly, the Sebi Special Court had permitted Parekh last year to travel abroad between December 20, 2024, and March 20, 2025, to destinations such as the UK, UAE, Singapore, Thailand, Sri Lanka, Japan and the EU.

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

Sebi following the probe, the regulator issued a show cause notice to the firm on February 20, 2025, alleging that the broker failed to exercise due skill and care by not keeping evidence of client order instructions.

SEBI gives mutual fund managers freedom to talk “off the record”

From August 3, mutual fund managers won’t need to record face-to-face conversations — but phones and dealing rooms are still to be recorded.

SEBI impounds Rs 4.8 cr profit made allegedly from front-running trades of big client

On the need to pass an interim order, SEBI's WTM Amarjeet Singh said that the gains needed to be impounded on an immediate basis so that such funds are not disposed of by the noticees

MC Explains: Why are Sebi’s search-and-seizure ops more serious than routine inquiries?

Search-and-seizure ops help when complex technology may have been used for market manipulation or when there can be tampering of evidence 

Quant MF cherry-picked these smallcap stocks lately. Do you own any?

Quant mutual fund’s stocks selection process helped many of its schemes to be ahead of the pack and deliver outstanding performance in their respective categories. Many of such stocks turned multibaggers and rewarded the investors handsomely. Here are the recent small cap additions in the portfolio of Quant mutual fund schemes over the last three months

7.3 times in 1,000,000,000,000,000,000,000,000,000: Sebi schools front-running duo on probability of trades coinciding with Big Client's

Sebi's WTM Ananth Narayan was adjudicating a front-running case by a former chief dealer at a brokerage and his sister

Sebi Board approves major changes to curb front-running in AMCs; to increase participation in IFSC-based FPIs

The Board that met on April 30, also approved changes to regulations to make unit-based employee benefit scheme available

How a Rs 5 note played a crucial role in front-running case involving three brokerages

A Sebi investigation has revealed how a dealer and few authorised persons of three brokerages front-ran trades of a big client.

Mirroring-of-trades case settled for Rs 44.2 lakh by one of three investigated

The market regulator had enquired into a complaint received on behalf of a boutique investment company

SEBI wants mutual funds to catch front running, insider trading frauds

In a consultation paper that SEBI issued on May 20, it has proposed setting up of internal surveillance systems in mutual fund houses to catch fraudulent activities. It wants fund houses to be more pro-active

Formula for front-running operations : Private mobile, isolated work space, mule accounts, reveal Sebi orders

A study of the two cases reveals a common sequence of events, circumstances and participants that helped the front-running misadventures.

MC Explains: Why are mule accounts dangerous and how Sebi plans to use brokers as gatekeepers

These accounts are set up to “carry’” out or route illegal activities such as front-running and pump-and-dump scams. These accounts are in the name of one person but are used by others such as fund managers or brokers

How Joshi the Jadugar worked the mechanics in Axis front-running case

There were no bank transactions between Viresh Joshi and other entities in India. Proceeds from the front-running trades were transferred to Viresh Joshi's Dubai-based firm's bank account

Axis Mutual Fund front-running case: Former chief trader spilled insider information to links in Dubai

Axis Mutual Fund front-running case has been under the regulatory scanner since early May 2022. On May 28, 2022, Sebi conducted searches at multiple premises associated with 16 'suspected entities.’

Front running – tip of the iceberg?

It is quite likely that even the increased number of front running cases caught is merely a small part of the number of actual offences. The profits are too easy and too large and the methods available to commit the act too sophisticated to draw any comfort

Why the US solution to prevent front-running won't work in India 

In the US there are various companies like Virtu Financial Inc and Citadel Securities that are wholesalers. They collect orders from various brokers, such as discount brokers like Charles Schwab and Robinhood and then route them to the exchange.  

Former fund manager Viresh Joshi sends legal notice to Axis Mutual Fund amid probe

Joshi, who was head equity dealer and a fund manager for six mutual fund schemes, was terminated by Axis Mutual Fund on May 18.

Does front running need better regulation?

Front running is possibly rampant with huge stakes and causes direct loss to investors and credibility of markets. The single short sub-clause of SEBI Regulations that presently regulates front running is not enough to curb it

Axis MF frontrunning case: Axis Bank awaits probe report; will not take action against mutual fund officials for now

The bank is standing by Axis Mutual Fund CEO and MD Chandresh Nigam after suspending two other fund house officials in connection with frontrunning allegations, say sources. But Nigam’s continuance might run afoul of the regulator.

Stricter punishment is the only way to prevent front running 

Unless the cost of chasing greed is made prohibitive such cases of front-running, market manipulation and insider trading will continue.  

Sebi is getting tougher with front-runners, thanks to some key regulatory changes

Over the last few years, the market regulator has been given more legal powers to act against offenders.

Too early to assess impact of alleged frontrunning at Axis Mutual Fund: Experts

It may be best for investors to wait for the investigation to be completed before deciding on the next course of action.

SEBI is catching up with front-runners

SEBI’s recent move to nab alleged front-runners is commendable, considering the scant regulatory base of just one clumsily drafted clause against front-running. The gaps against front-running are partly filled by a Supreme Court decision and a SEBI circular