Motilal Oswal Financial Services Settles Front-Running Allegations

Motilal Oswal Financial Services settled proceedings over alleged front-running of trades, agreeing to pay Rs 34.85 lakh in settlement charges. The settlement comes as part of an investigation by the Securities and Exchange Board of India (Sebi) into trading irregularities.

Front-running, an illegal stock market practice, was central to the allegations. It involves trading securities based on insider information from brokers or analysts before it reaches clients. Sebi's investigation aimed to determine whether trades from a major client had been front run by certain entities, including the Chaturvedi Group.

Although the settlement does not constitute an admission of guilt, Sebi retains the right to act if future violations occur or if any aspect of the company's representations are proven false. Motilal Oswal Financial Services filed for a settlement in March, with the revised terms receiving approval from Sebi.

(With inputs from agencies.)