Sebi Settlement: Chaturvedi Group Ends Front-Running Saga
Four entities, including Manish, Ashish, and Rajni Chaturvedi, settled with Sebi over alleged stock market front-running by paying Rs 1.76 crore. They admitted no wrongdoing but agreed to a six-month securities market debarment. Sebi's investigation found deceptive trading practices at Indus Strategy Financial Advisors Pvt Ltd, directed by the Chaturvedis.
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- India
In a significant move, four entities have reached a settlement with the Securities and Exchange Board of India (Sebi) in a high-profile case concerning alleged front-running in stock trades. Collectively, they have paid Rs 1.76 crore as settlement charges.
The illegal practice of front-running involves trading based on privileged information prior to it reaching clients. Manish, Ashish, and Rajni Chaturvedi, along with Indus Strategy Financial Advisors Pvt Ltd, have accepted a six-month market debarment. They filed settlement applications with Sebi, agreeing to settle without admitting or denying any legal violations.
Sebi's probe into the Chaturvedis' trading activities, reportedly aided by sales trader Atul Gopeshwar Chaturvedi, uncovered manipulative practices resulting in unlawful gains. The settlement included a disgorgement to Sebi and resolved another recent case with Antique Stock Broking over similar allegations.
(With inputs from agencies.)
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