New Delhi: Regulator I myself In the matter of front-running activities relating to Reliance Securities, till further orders, 19 entities, including individuals, from the securities market have passed a confirmation order.
On 20 August, the watchdog passed an interim order barring several individuals and entities from the capital markets after some dealers uncovered a major case of front running. Reliance Securities Limited and by using their prior access to sell and buy orders by their linked entities Bye Absolute Return Fund.
The latest order, dated June 30, issued after assessing whether its directions were passed against several entities in August 2020, needs to be confirmed, repealed or amended pending investigation in the matter.
In the latest order running into 75 pages, SEBI said the findings are “Prima facie“And a detailed investigation is on in the matter which may reveal the omissions of the entities or additional roles of commission, if any.
The regulator’s internal monitoring system had generated front running alerts in December 2019 and January 2020 against a specific individual, Meena Ramnilal Veera, who was suspected of running the trades of Tata Absolute Return Fund, a scheme of Tata AIF (Big Client) . Tata AIF is a SEBI-registered alternative investment fund.
SEBI conducted the preliminary exam between December 2019-April 2020 based on the alert. It was found that almost 99 per cent of large client trades, in terms of value, were executed through their broker, Reliance Securities Ltd.
The big customer was placing orders through three dealers – Harshal Ramnik Veera, Bhavesh Gandhi and Abhijit Nandkumar Jain. They were privy to non-public information for large customer’s incoming orders.
Certain entities associated with the dealers were prima facie seen doing business on the basis of imminent orders of large customers on several occasions during different time periods during the examination period.
In the latest order, SEBI barred 19 entities from “buying, selling or dealing in the securities market or associating themselves with the securities market, directly or indirectly, in any manner till further instructions”.
Further, they have been directed to cease and desist from carrying out any activity in the securities market, by any means, directly or indirectly, until further instructions.
Certain other directions relating to certain persons have also been passed by SEBI.
On 20 August, the watchdog passed an interim order barring several individuals and entities from the capital markets after some dealers uncovered a major case of front running. Reliance Securities Limited and by using their prior access to sell and buy orders by their linked entities Bye Absolute Return Fund.
The latest order, dated June 30, issued after assessing whether its directions were passed against several entities in August 2020, needs to be confirmed, repealed or amended pending investigation in the matter.
In the latest order running into 75 pages, SEBI said the findings are “Prima facie“And a detailed investigation is on in the matter which may reveal the omissions of the entities or additional roles of commission, if any.
The regulator’s internal monitoring system had generated front running alerts in December 2019 and January 2020 against a specific individual, Meena Ramnilal Veera, who was suspected of running the trades of Tata Absolute Return Fund, a scheme of Tata AIF (Big Client) . Tata AIF is a SEBI-registered alternative investment fund.
SEBI conducted the preliminary exam between December 2019-April 2020 based on the alert. It was found that almost 99 per cent of large client trades, in terms of value, were executed through their broker, Reliance Securities Ltd.
The big customer was placing orders through three dealers – Harshal Ramnik Veera, Bhavesh Gandhi and Abhijit Nandkumar Jain. They were privy to non-public information for large customer’s incoming orders.
Certain entities associated with the dealers were prima facie seen doing business on the basis of imminent orders of large customers on several occasions during different time periods during the examination period.
In the latest order, SEBI barred 19 entities from “buying, selling or dealing in the securities market or associating themselves with the securities market, directly or indirectly, in any manner till further instructions”.
Further, they have been directed to cease and desist from carrying out any activity in the securities market, by any means, directly or indirectly, until further instructions.
Certain other directions relating to certain persons have also been passed by SEBI.
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