Sebi Settles with Antique Stock Broking in Front-Running Case

Antique Stock Broking has reached a settlement with Sebi for Rs 29.25 lakh over allegations of front-running trades. This illegal stock market practice involves trading based on insider information. Although Sebi won't proceed with enforcement, it reserves the right for future actions if discrepancies arise.

In a significant development, Antique Stock Broking has resolved issues with the Securities and Exchange Board of India (Sebi) by paying a settlement charge of Rs 29.25 lakh. The case involved allegations of front-running trades, an illicit market activity where trades are conducted based on confidential broker or analyst information before public availability.

The settlement was finalized following Antique Stock Broking's application submitted on November 26, 2024, opting to conclude the pending proceedings without acknowledging or refuting the findings and legal conclusions of Sebi. This settlement allows the company to avoid further enforcement action for the alleged violations by the market regulator.

Sebi's investigation initially targeted MBM Financial Services for supposedly front-running Alpna Enterprises' trades between December 2021 and June 2022. While Antique Stock Broking has managed to settle, Sebi has retained the right to pursue further action should any misrepresentation come to light or if the settlement terms are breached.

(With inputs from agencies.)