Mumbai, Dec 22 (IANS) Market regulator, the Securities and Exchange Board of India (SEBI) has taken strict action in a front-running case, banning PNB Met Life Insurance Company’s equity dealer Sachin Bakul Dagli and eight other entities from the stock market.
According to the SEBI, front running was being done by Dagli and eight entities for more than three years and during this period, all of them collectively earned illegal profits of Rs 21.16 crore.
The market regulator banned Dagli and the eight entities from the stock market and seized the unlawful gains.
The SEBI had investigated some suspicious front-running trades related to PNB MetLife India Insurance before this action.
The focus of this investigation was to find out whether the suspicious entities were doing front running in the trade of PNB MetLife India Insurance with the help of other people, including dealers and fund managers. It also sought to find whether SEBI rules have been violated or not.
The investigation, which was conducted from January 1, 2021, to July 19, 2024, revealed that most of the trading decisions at PNB MetLife were assigned to Dagli for execution.
The investigation found that Dagli, the equity dealer of PNB MetLife, and his brother Tejas Dagli, an equity sales trader at Investec, obtained confidential, non-public information about the upcoming trading decisions of PNB MetLife and Investec.
This information was further used to make trading decisions and shared with Sandeep Shambharkar, who executed front-running trades through the accounts of Dhanmata Realty Private Ltd (DRPL), Worthy Distributors Private Ltd (WDPL), and Pragnesh Sanghvi.
DRPL and WDPL Directors Arpan Kirtikumar Shah, Kabita Saha, and Jignesh Nikulbhai Dabhi were also involved in carrying out this task.
The SEBI said that 6,766 front-running trades have been executed. A profit of Rs 21,15,78,005 was earned from this.
PNB MetLife, in its statement given to IANS, said: “Company has fully cooperated with the authorities in this matter and wants to thank SEBI for the conclusion of its findings of fraud by the named individual against PNB MetLife. In line with our internal processes, we have taken disciplinary action.”
“PNB MetLife is committed to upholding the highest standards of corporate governance, transparency, and integrity,” the company added.
Front-running is an illegal practice, entailing a trader or broker receiving confidential information about a large company or institution making a bulk order in a particular stock and creating a position in that particular stock before the big order is executed.
In such a situation, when the order is executed by a big company or institution, the trader or broker gets the benefit of the sudden rise in that stock.
–IANS
avs/vd
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by TodayIndia.news and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of TodayIndia.news We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, TodayIndia.news takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
