SEBI impounds assets in front-running case

This is a final order by SEBI regarding allegations of front-running, where a broker allegedly shared non-public information about a large client's trades with others to make unlawful profits. SEBI examined the trading patterns and communications of eight individuals and entities to determine if they violated securities laws.

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., and Chirag Mahendra Shah.

• SEBI found that the noticees engaged in front-running trades on 433 specific 'scrip days' between April 2021 and May 2022.
• SEBI determined that the noticees made cumulative unlawful gains of approximately ₹1.30 Crore (₹1,30,15,856.95).
• SEBI found that Noticee 1 (Ashok Maheshwari) passed material non-public information to Noticee 2 (Darshan Bakul Shah) via Telegram.
• SEBI found that Noticees 6 and 8 made false statements on oath regarding how orders were placed.
• SEBI directed the impounding of the total unlawful gain amount of ₹1,30,15,856.95.
• SEBI restrained the noticees from buying, selling, or dealing in securities until further orders.
• SEBI restrained Noticee 1 from associating with any SEBI-registered intermediary in any capacity.

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