SEBI impounds ₹2.72 crore in stock front-running case

SEBI examined whether these parties used non-public information to trade ahead of LIC's orders for profit.

Who it concerns: Madhav Stock Vision Pvt. Ltd., Jyotiswaroop Nandkishore Purohit, Pankit Bhagwati Jhaveri, Rajesh Bhagwati Jhaveri, Ajay Sampatraj Jain, and Rajkumar Prabhu Damani.

What SEBI found or ordered

• SEBI found a prima facie case of front-running of LIC trades by MSVPL and the other noticees between April 2020 and December 2023.
• SEBI directed the impounding of INR 2,72,82,731.90 as alleged unlawful gains, to be held in fixed deposit accounts with a lien in favor of SEBI.
• SEBI restrained MSVPL from buying, selling, or dealing in securities in its proprietary account with immediate effect.
• SEBI restrained the five individual noticees 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.

Also in the document

• The investigation period covered April 1, 2020, to December 1, 2023.
• SEBI stated that search and seizure operations were carried out at various locations of the noticees on December 4, 2023.
• The alleged scheme involved 'Information Carriers' (noticees 2 and 3) passing non-public information to 'Enablers' (noticees 4-6) who then executed trades for MSVPL.
• The order is a Final Order, concluding the proceedings that began with an Interim Order cum Show Cause Notice dated April 23, 2025.