Sebi Cracks Down on PNB MetLife's Rogue Trading Network

Sebi has busted a front-running scheme involving PNB MetLife's equity dealer Sachin Bakul Dagli and eight others, who made illegal gains worth Rs 21.16 crore. Sebi has prohibited these entities from the securities market and seized their unlawful profits. PNB MetLife cooperated with the investigation and took disciplinary measures.

The Securities and Exchange Board of India (Sebi) has uncovered a far-reaching front-running scheme implicating nine entities, including Sachin Bakul Dagli, an equity dealer at PNB MetLife India Insurance Company. The fraudulent activities generated illicit profits totaling Rs 21.16 crore and persisted for more than three years.

In response to the findings, Sebi has issued an interim order barring these entities from engaging in securities transactions and impounded the unlawful gains. PNB MetLife announced its full cooperation with Sebi in the investigation and confirmed internal disciplinary actions against those involved.

The investigation centered on trades associated with PNB MetLife and revealed that confidential, non-public information was exploited for profit, violating multiple provisions of the SEBI Act. Among the implicated, directors of Dhanmata Realty Pvt. and Worthy Distributors Pvt. facilitated the scheme, resulting in significant illicit trading activity.

(With inputs from agencies.)