Axis Securities Settles Front-Running Case for Rs 14.62 Lakh

Axis Securities settled a front-running case by paying Rs 14.62 lakh to Sebi. The case involved broker Vikrant Bhimrao Kadam and his associate, who allegedly traded on insider information. Sebi's investigation showed compliance policy violations, leading to the settlement without an admission of guilt.

In a significant move, Axis Securities has settled a front-running case by paying a settlement fee of Rs 14.62 lakh to the Securities and Exchange Board of India (Sebi). The case involved Vikrant Bhimrao Kadam, a dealer with the firm, and Mandar Ulhas Bhatkar, a close associate.

The issue emerged when Axis Securities failed to exercise appropriate diligence in its dealer and branch manager compliance policy. The regulator's investigation hinted that Kadam and Bhatkar engaged in front-running the trades of a major client of Axis Securities, leveraging advanced information for profit.

Sebi, in its settlement order, highlighted the breach of compliance policy and issued a show cause notice. To settle the matter without admitting or denying any violations, Axis Securities remitted the settlement amount, closing the case officially.

(With inputs from agencies.)