SEBI has directed to withdraw the illegal profit of Rs 2.73 crore earned by six institutions.
Market regulator SEBI on Wednesday stopped stock broker Madhav Stock Vision from using his ownership account in security. According to SEBI, MSVPL was allegedly involved in front-hanging trade. According to PTI news, the regulator has also stopped five persons from purchasing, selling or dealing with any securities directly or indirectly, according to an interim order. This has shocked them strongly.
Instructions to refund illegal profit
According to the news, market regulator SEBI has directed to withdraw the illegal benefit of Rs 2.73 crore earned by six institutions. Investigations conducted by SEBI found that Madhav Stock Vision made the trades conducted by Big Clients through four different stock brokers, which are registered members of both NSE and BSE. The order was given by SEBI after investigation covering the period from April 1, 2020 to December 1, 2023.
Its purpose was to investigate the illegal trade before the alleged front-ringing large order, which included a major institutional investor referred to as a Big Client. Front-ringing refers to an illegal practice in the stock market, in which an institution does business on the basis of advance information received from a broker or analyst before providing information to its customers.
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