Sebi bans eight entities from securities markets

PTI

New Delhi, April 26

Markets regulator Sebi on Friday barred eight entities from the securities markets and seized “unlawful gains” of Rs 1.3 crore earned by them from front-running activities.

The eight entities are Ashok Maheshwari, Darshan Bakul Shah, Khusboo Darshan Shah, Darshan Bakul Shah, Benzer Department Stores Pvt Ltd, CHL Stock Concepts Pvt Ltd, Chirag Mahendra Shah, and Mihir Dhirajalal Savla.

Front-running refers to an illegal practice in the stock market where an entity trades based on advance information from a broker or analyst before the information has been made available to its clients.

In its 77-page order, Sebi found that Ashok Maheshwari was instrumental in supplying the information about the impending trades of the Big Client to Darshan Bakul Shah and such information was utilised to execute front running trades. By indulging in such trades, the entities violated the provision of Prohibition of Fraudulent and Unfair Trade Practices norms, it said.