Markets regulator SEBI on Friday banned six persons from the securities market for further trading for up to five years. India Infoline Group (IIFL Group). In this case, a dealer of India Infoline Group and its affiliated entities used “mule” accounts.
In its order, SEBI has banned IIFL Group unit dealers Santosh Brijraj Singh and Adil Ghulam Suthar from the market for five years, while mule account holders Virendra Pratap Singh, Neha Virendra Singh, Ghulam Mohammad Ghulambas Sheikh and Mohammaddrish have been banned. Have given. A sheikh for two years.
Further, these persons are barred from holding the office of director, holding any managerial position or associating themselves in any capacity with any listed public company. Apart from this, SEBI imposed a fine of Rs 10 lakh on Santosh Briraj Singh and Rs 8 lakh on Adil Ghulam Suthar.
SEBI noted that these individuals were carrying on the trades of six entities of the IIFL Group, including IIFL Asset Management, also known as Big ‘Clients’. The regulator found that Santosh Brijraj Singh, after going privy to non-public information of incoming orders from large customers, directly or indirectly informed its respective entity Adil Ghulam Suthar.
Thereafter, they both used the mule account set up to place forward trades. He had made significant profits while carrying on the trades. It further mentioned that Santosh B Singh and Adil Ghulam Suthar placed orders from trading accounts of mule account holders – Virendra Pratap Singh, Neha Virendra Singh, Ghulam Mohammad Ghulambas Sheikh and Mohammaddrish A Sheikh.
The regulator observed that Santosh Brijraj Singh and Adil Ghulam Suthar employed a pre-determined plan to forward the imminent orders of large customers with the help and cooperation of Virendra Pratap Singh, Neha Virender Singh, Ghulam Mohd Ghulambas Shaikh and Mohammaddrish A. Shaikh. . As per the plan, they have carried out orders from large customers on several occasions during the POI and made huge erroneous profits. “Notice No. 5 and 6 (Santosh Brijraj Singh and Adil Ghulam Suthar) who opened, operated, managed and controlled the accounts of Notice No. 1 to 4 (other four persons) and sometimes they were receiving monetary assistance from Notice No. 5 It was also learned that notice no. 1 to 4 were poor and not literate and leading their lives with difficulties,” SEBI said in an order.
The regulator noted that the trading pattern showed the deployment of BBS (Buy-by-Sell) or SSB (Sell-Sell-Buy) strategies. These are two typical methods of front running, whereby front runners place buy or sell orders immediately before a large client’s final buy or sell order and then place sell or buy orders after the stock price rises or falls, respectively. Execution of the final order by the customer.
Earlier in October 2020, the regulator through an interim order barred these six persons from capital markets till further instructions. Following the SEBI order, IIFL Asset Management Company has suspended the services of its employee Santosh B Singh.
The order comes after the Securities and Exchange Board of India (SEBI) initiated a preliminary inquiry in the present case against Virendra Pratap Singh and Neha Virender Singh, who were suspected of carrying out trades of India Infoline Asset Management, based on a surveillance alert. . Ltd.
Recently, as part of the ongoing investigation into a front-running case in Axis Mutual Fund, the Securities and Exchange Board of India (SEBI) conducted search and seizure operations on 16 suspicious entities at over 30 locations in Maharashtra and Gujarat in the past. few weeks.
Axis Mutual Fund has sacked two fund managers Viresh Joshi and Deepak Agarwal for alleged misconduct without disclosing details. Joshi has sent a legal notice to the fund house for wrongful termination.
(with inputs from PTI)
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