Final Order in the matter of front running by Ashok Maheshwari and others

What is this order about?

This order addresses SEBI's final determination on allegations of front-running by Ashok Maheshwari and others, involving coordinated trading ahead of a Portfolio Management Service client's trades to gain unlawful profits.

Who it concerns

ASHOK MAHESHWARI, DARSHAN BAKUL SHAH, KHUSBOO DARSHAN SHAH, DARSHAN BAKUL SHAH (HUF), BENZER DEPARTMENT STORES PVT. LTD., MIHIR DHIRAJALAL SAVLA, CHL STOCK CONCEPTS PVT. LTD., CHIRAG MAHENDRA SHAH

What was found or directed

• SEBI found front-running violations of Sections 11C(3) and 12A(a), (b), (c), (e) of SEBI Act, 1992 and PFUTP Regulations
• Unlawful gains of ₹1.30 Crore cumulatively in accounts of Noticees 2, 3, 4, 5, 7, 8
• Noticee 1 (Ashok Maheshwari) barred from associating with SEBI-registered intermediaries
• All Noticees restrained from buying/selling securities until further orders
• ₹1,30,15,856.95 directed to be impounded
• Noticees 6 and 8 found to have made false statements on oath

Points worth noting

• Total unlawful gains amount: ₹1.30 Crore (₹1,30,15,856.95)
• 433 scrip days (426 cash segment, 7 F&O segment) involved in front-running
• Noticee 2 admitted to sharing profits with Noticee 1 via Telegram and cash
• Noticees 5, 6, 7, 8 deposited the impounded amount before SAT appeal