Sebi Settles Front-Running Case with Six Entities for Rs 3.49 Crore

Sebi settled a front-running case with six entities, including Samir Kothari and Jitendra N Kewalramani, for Rs 3.49 crore. The settlement included disgorgement of Rs 2.06 crore and a six-month securities market bar. The proceedings followed investigation into PFUTP rule violations.

Sebi has reached a settlement with six entities involved in a suspected front-running case, which includes significant players like Samir Kothari and Jitendra N Kewalramani. The resolution demands a total payment of Rs 3.49 crore in settlement charges.

The settlement also required disgorgement of unlawful gains amounting to Rs 2.06 crore. As part of the agreement, the accused parties will voluntarily abstain from securities market activities for six months.

The case emerged from an investigation examining potential violations of PFUTP regulations. Sebi's inquiry identified that the involved parties placed trades before those of large trusts, leading to significant unwarranted profits.

(With inputs from agencies.)