SEBI has banned these(SEBI )

Market regulator SEBI  (SEBI ) on Wednesday barred stock broker Madhav Stock Vision from trading in securities using its proprietary account. According to SEBI, MSVPL was allegedly involved in front-running trades. Also, according to an interim order, the regulator has barred five individuals from buying, selling or dealing in any securities directly or indirectly. This has given them a major setback.

Instruction to return illegal profits

According to the news, market regulator SEBI has directed to return illegal profits of Rs 2.73 crore earned by six entities. An investigation conducted by SEBI found that Madhav Stock Vision front-ran the trades made by Big Client through four different stock brokers, who are registered members of both NSE and BSE. The order was passed by SEBI following an investigation covering the period from April 1, 2020 to December 1, 2023.

The purpose was to investigate alleged front-running illegal trading ahead of large orders involving a major institutional investor referred to as the Big Client. Front-running refers to an illegal practice in the stock market in which an entity trades based on advance information received from a broker or analyst before the information is made available to its clients.