SEBI impounds ₹2.72 crore in stock front-running case

This is a Final Order by SEBI regarding allegations of front-running trades of Life Insurance Corporation of India (LIC) by Madhav Stock Vision Pvt. Ltd. (MSVPL) and five associated individuals between April 2020 and December 2023. SEBI examined whether these parties used non-public information to place trades ahead of LIC's orders to generate unlawful gains.

Madhav Stock Vision Pvt. Ltd. (Noticee 1), Jyotiswaroop Nandkishore Purohit (Noticee 2), Pankit Bhagwati Jhaveri (Noticee 3), Rajesh Bhagwati Jhaveri (Noticee 4), Ajay Sampatraj Jain (Noticee 5), and Rajkumar Prabhu Damani (Noticee 6).

• SEBI found a prima facie case of violations of the SEBI Act and PFUTP Regulations based on evidence including Call Data Records, proximity to dealing desks, and profit sharing among the Noticees.
• SEBI directed the impounding of INR 2,72,82,731.90, calculated as total unlawful gains, to be kept in fixed deposit accounts with a lien in favor of SEBI.
• SEBI restrained Noticee 1 (MSVPL) from buying, selling, or dealing in securities in its proprietary account with immediate effect.
• SEBI restrained Noticees 2 through 6 from buying, selling, or dealing in securities directly or indirectly with immediate effect.
• The order was issued under Sections 11(1), 11(4), 11(4A), 11B(1), and 11B(2) of the SEBI Act, 1992.

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