Sebi's Crackdown: Exposing the Rs 21 Crore Front-Running Fraud

The Securities and Exchange Board of India (Sebi) has uncovered a front-running scheme involving PNB MetLife India Insurance Company's equity dealer Sachin Bakul Dagli and eight other entities. This fraudulent activity, which spanned over three years, resulted in illegal gains of Rs 21.16 crore. Sebi has prohibited the involved entities from the securities market and confiscated their unlawful profits.

The Securities and Exchange Board of India (Sebi) has dismantled a significant front-running fraud scheme linked to the PNB MetLife India Insurance Company, orchestrated by equity dealer Sachin Bakul Dagli and eight accomplices. The collusion yielded illicit gains amounting to Rs 21.16 crore over three years.

This intricate scheme involved the misuse of confidential, non-public trade information, followed by strategic trades to exploit impending market movements. Trades were executed through entities like Dhanmata Realty Pvt Ltd and Worthy Distributors Pvt Ltd, among others, ultimately breaching Sebi's regulations.

Following the investigation, Sebi has firmly restrained Sachin Dagli and his associates from participating in the securities market and impounded the profits accrued unlawfully. This action underscores Sebi's commitment to eradicating fraudulent practices and upholding market integrity.

(With inputs from agencies.)