Sebi Bans 8 Entities Forfront-Running Case

New Delhi: Regulator Sebi on Monday barred eight entities and two persons from the securities market and impounded illegal gains of Rs4.82 crore made from their alleged front-running activities.Front-running refers to an illegal practice in the stock market where an entity trades based on advanced information from a broker or analyst before the information has been made public.

The findings came after the Sebi conducted an investigation in respect of the alleged front-running of the trades of Gagandeep Consultancy Private Limited (big client) by certain entities. The focus of the investigation was to ascertain the violation of provisions of the PFUTP rules by the entities and the period of investigation was from Sept 2018 to Sept 2023.