Sebi carries out nationwide raids on market experts for front-running


The regulator Securities & Exchange Board of India (SEBI) has carried out nationwide raids targeting front-running carried out by market experts appearing on a business television channel.

The raids comprising search and seizures were carried out at the homes and offices of around half a dozen entities reportedly engaged in front-running based on illegally obtained market information for profits.

The sleuths swooped at multiple locations in Pune, Kolkata, NOIDA and Jaipur after extensive internal alert systems and external surveillance data pointed at front-running by some persons linked with a few ‘market experts’ airing their expertise on channels.

According to the modus operandi, just prior to the market experts going on air to recommend certain stocks, the targeted entities would take positions on those stocks, violating the SEBI’s regulations pertaining to fraudulent and unfair trade practices.

The teams have affected seizures of mobile phones, computers, laptops, tablets, drives and other physical records of these raided entities purportedly engaged in using the advance information for gains, and further investigations are underway.

Despite repeated attempts top officials were not available for their comments in the matter.



(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


Source link

Comments are closed.