Sebi Settlement: Key Players in Trade Front-Running Case Pay Over ₹3 Crores

Six entities, including Samir Kothari and Jitendra N Kewalramani, settled charges with Sebi for suspected front-running trades by paying a settlement of Rs 3.49 crore. Sebi's committee imposed additional conditions, including a six-month market bar for the entities. The settlement comes after an investigation found violations of PFUTP rules.

In a significant development, six entities, including Samir Kothari and Jitendra N Kewalramani, have settled allegations of front-running trades by paying ₹3.49 crore to Sebi, India's capital markets regulator.

The probe revealed that these individuals and associated parties consistently placed trades ahead of major clients' orders during January 2021 to October 2022, violating PFUTP norms.

As part of their settlement, the parties have agreed to a six-month self-imposed market ban while also paying the disgorgement amount and accumulated interest. This move follows the approval of the High Powered Advisory Committee on revised settlement terms.

(With inputs from agencies.)