Six companies have been barred from the securities market by SEBI, including Ninja Securities and Banheim Stock Broking, for allegedly engaging in trades against Anvil Wealth Management and receiving an undue benefit of Rs 2.23 crore from them.
The regulator has also banned Kaushal Chandrana, Manish Mehta, Kashmira Mehta, and Sumatilal Mehta in addition to these two.
In addition, the Securities and Exchange Board of India (SEBI) stated in its interim order on Tuesday that the entities have been instructed not to dispose of any of their assets or securities until the amount of wrongful gain has been deposited. Is.
Sebi found in its order that Ninja and Banheim traded in a variety of securities prior to the portfolio management service provider Anvil Wealth Management’s orders. Additionally, it was reported that Manish Mehta, the common director of Ninja and Banheim, had tied the knot with Anvil portfolio manager Kaushal Chandrana.
It was discovered that Mehta and Chandra had devised a plan in which the former would inform the latter of impending trade orders from a significant client (anvil), and the latter would then place orders from the trading accounts of his respective businesses., Ninja and Banheim, thereby leading a company with significant customers.
“Ninja, Banhem, Sumtilal Mehta and Kashmira Mehta additionally assumed a similarly significant part in execution of those at first sight front running exchanges as they empowered Kaushal and Manish to execute front running exchanges from the exchanging records of Ninja and Banhem , which drove SEBI to say, “prima facie…violation of PFUTP guidelines.”
Six organizations made a wrongful profit of Rs 2.23 crore through such apparent front-running activities.
“Buying, selling or dealing in securities market or associating themselves, directly or indirectly, with securities market in any manner until further orders” has therefore been prohibited by SEBI.
“an amount of Rs 2.23 crore, estimated as prima facie total wrongful gain earned from the front running activities,” it added, “has been jointly and severally seized from the noticees.”
In the context of the stock market, the term “front-running” refers to the illegal act of making trades based on information obtained in advance from a broker or analyst before that information is made available to their clients.
The order follows alerts from the NSE’s monitoring system that certain suspicious entities executed unusual trades between March 2020 and June 2021 in order to drive wealth trades. These trades were clearly in the nature of unusual trades. Pvt. Management Ltd., a service provider for portfolio management
From March 2020 to September 2022, the Securities and Exchange Board of India (SEBI) began investigating those alleged entities for potential infractions of the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) regulations.