Adjudication Proceedings in the matter of front running activities by Mr. Bhavik Indravadan…

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.

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.

• 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.

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