SEBI finds ₹6.08 crore net profit from front-running trades by three individuals

This order addresses the failure of three individuals to provide information or produce documents requested by SEBI during an investigation into alleged front-running of trades in Rajesh Exports Ltd. SEBI found that the individuals violated Section 11C(3) of the SEBI Act by not cooperating with the investigation.

Who it concerns: Navnit Gadoya, Chiranggi Irish Shah, and Surbhi Aggarwal

What SEBI found or ordered

• SEBI found that the noticees violated Section 11C(3) of the SEBI Act by failing to furnish information or produce documents requested by the Investigating Authority.
• The investigation covered the period from January 1, 2023, to October 31, 2023, involving 38 alleged front-running instances in the equity segment of NSE.
• SEBI noted that the noticees earned a net profit of Rs. 4,06,17,184 from day trading in Rajesh Exports Ltd during the investigation period.
• The matter was proceeded ex-parte as none of the noticees appeared for the hearing on May 5, 2026, or submitted a response to the Show Cause Notice.
• SEBI noted that Noticee 1 (Navnit Gadoya) failed to respond to multiple summons and emails, while Noticees 2 and 3 submitted incorrect or vague information initially.

Also in the document

• SEBI observed that the noticees were connected to each other through frequent call records, bank transactions, and identical MAC ID/IP addresses.
• One of the 'Big Clients' whose trades were allegedly front-run was a Mauritius-based Foreign Portfolio Investor (FPI).
• The total net profit earned by the noticees from day trading across 38 unique scrips during the investigation period was Rs. 6,07,87,599.80.