SEBI probes ₹5.15 lakh front-running gains by Shah family

This order details SEBI's adjudication proceedings against Mr. Bhavik Indravadan Shah and related entities for alleged front-running of trades belonging to a large client, Kaushik Shah Shares & Securities Pvt. Ltd., during the period from October 2021 to January 2025.

Who it concerns: Mr. Bhavik Indravadan Shah, Mrs. Jayshree Bhavik Shah, and Bhavik Indravadan Shah HUF (collectively referred to as the Noticees); the case also concerns the Big Client, Kaushik Shah Shares & Securities Pvt. Ltd.

What SEBI found or ordered

• SEBI alleged that the Noticees violated Sections 12A(a), 12A(b), and 12A(c) of the SEBI Act and specific regulations under the PFUTP Regulations, 2003.
• The investigation identified 72 specific front-running instances where the Noticees earned a total profit of Rs. 5,14,742.
• SEBI alleged that Mr. Bhavik Indravadan Shah, as a dealer for the Big Client, used non-public information about impending orders to place his own trades ahead of the client's orders.
• A Show Cause Notice was issued on April 28, 2026, to the Noticees to explain why penalties should not be imposed.
• The alleged front-running occurred in the equity segment at NSE through the broker BP Equities Pvt. Ltd.

Also in the document

• The alleged front-running pattern was identified as 'Buy-Buy-Sell' (BBS), where the Noticees bought shares before the Big Client's final buy tranche and sold them immediately after the Big Client started buying.
• The Noticees are related family members: Mr. Bhavik is the husband of Mrs. Jayshree and the Karta of the HUF.
• The total profit calculated by NSE for the 72 profitable front-running instances was Rs. 5.15 Lakh (Rs. 5,14,742).