Sebi’s whole time member Ananth Narayan G said in the order that there is No reason or grounds to differ from the prima facie findings in the interim order
Sebi on 20th March confirmed a securities market ban on five entities, which also includes an employee of Life Insurance Corporation of India (LIC), in the front-running case of the state-owned insurer.
SEBI also said that the observations made in the present order are tentative in nature and pending for further investigation. “Based on the outcome of the investigation, appropriate proceedings may be initiated in accordance with law,” Sebi said.
What Is Front-running ?
Front-running is illegal practice in the stock market If an entity trades on the basis of advanced information received from a broker or analyst before such information has been made available to its clients.
What Is There In SEBI’s Order
In a confirmatory order, Sebi said that the restraint imposed vide the interim order dated April 27, 2023, on Yogesh Garg, Sarita Garg, Kamlesh Agarwal, Ved Prakash HUF and Sarita Garg HUF from buying, selling or dealing in securities either directly or indirectly, in any manner whatsoever, shall continue until further orders.
“I find that the submissions of the notices are insufficient to refute the prima facie conclusions drawn in the interim order.”
Sebi’s whole time member Ananth Narayan G said in the order that there is No reason or grounds to differ from the prima facie findings in the interim order, and therefore, the finding in the Interim Order that the Notices have prima facie front run the trades of the big client resulting in violation PFUTP Regulations stands confirmed.
SEBI Order On Five Entities
The five entities are connected through family relations, a common address and a common phone number.
According to Sebi’s order, Yogesh Garg is still associated with LIC. However LIC earlier informed SEBI that Yogesh Garg has been transferred from the investment department of the company to another department of the insurance firm, reported Business Standard.
In April 2023, Sebi banned five entities, including an employee of Life Insurance Corporation of India (LIC), from the securities market front-running case.