Financial Market Regulator SEBI (SEBI) has announced ban on three persons and two entities in LIC front running case. After this ban, both the entities and all the three persons will not be able to trade in the securities market. In this case SEBI has taken action against LIC employee Yogesh Garg and two other persons Sarita Garg and Kamlesh Agarwal. The regulator has also taken action against Ved Prakash HUF and Sarita Garg HUF in this matter.
Seized Rs 2.44 crore
SEBI has also seized the amount of Rs 2.44 crore deposited in the account of this person. The market regulator has taken this action in the case of front running trading.
What is front running trading
Front running is the practice adopted by dealers after the information has been made available in advance by brokers and analysts before giving related information to the clients.
SEBI has said this in its order
SEBI, in its interim order, has said that the entities shall refrain themselves from engaging in any fraudulent, misleading or unfair trade practices such as front running, directly or indirectly, so as not to contravene any rules under relevant sections of the relevant laws.
Sebi’s order states that prima facie it has been found that Noticee 1 to 5 (five units) were involved in the front run scheme involving trading of big clients and due to this, they were siphoning off the proceeds from front running trades. are accountable for.
SEBI has found that being a LIC dealer, Yogesh Garg was in possession of information which was not available to the general public. It also contained information related to upcoming orders from LIC and acted as an information carrier.