SEBI adjudicates front-running of Axis Mutual Fund trades via Dubai

SEBI examined whether these entities violated regulations regarding fraudulent and unfair trade practices.

Who it concerns: Woodstock Broking Pvt. Ltd., Mr. Suresh Kanmal Jajoo, Ms. Vimla Suresh Jajoo, Mr. Jugal Kishore Bajaj, Mr. Jagdish Shantilal Maheshwari, Mr. Dilip Pandurang Malap, Marfatia Stock Broking Pvt. Ltd., Mr. Nishil Surendra Marfatia, Ms. Shreya Nishil Marfatia, and Late Surendra Mangaldas Marfatia (represented by his son).

What SEBI found or ordered

• Investigation period covered April 1, 2021, to March 31, 2022.
• SEBI alleged that the noticees facilitated front-running by installing trading software (ODIN) on systems in Dubai using remote access tools (AnyDesk).
• Alleged violations include Sections 12A(a), 12A(b), and 12A(c) of the SEBI Act and Regulations 3(a)-(d) and 4(1) of the PFUTP Regulations, 2003.
• A Show Cause Notice was issued on October 31, 2023, and a further notice on June 18, 2025.
• SEBI alleged that profits from trades in the Woodstock Group account amounted to approximately Rs. 14.50 crore.
• The order notes that the Adjudicating Officer was appointed in April 2025 following the superannuation of the previous officer.

Also in the document

• The alleged scheme involved cross-border activity, with trades executed from Dubai by Mr. Prijesh Kurani using terminals provided by the Indian stockbrokers.
• SEBI’s investigation included search and seizure operations in May 2022 and analysis of WhatsApp chat data to establish the modus operandi.
• The order distinguishes between two groups: the 'Marfatia Group' and the 'Woodstock Group,' both allegedly linked to the same information provider and arrangers.