sebi:QJA/MN/IVD/ID13/31448/2025-26
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Noticees held liable for front running under PFUTP Regulations; disgorgement of ₹48,11,373 directed to be credited to IPEF within 45 days, along with other directions and penalty (amount not specified in extract)
Provisions invoked
- s. 19
- s. 11(1)
- s. 12A
- s. 15H
- s. 15J
- s. 11C
- s. 25
- s. 11(5)
Regulations
- Reg. 4(2)
- Reg. 3(a)
- Reg. 4(2)(q)
Parties
- M/s MBM Financial Services (Noticee No.1)
- Mr. Chetan Mehta (Noticee No.2)
- Mr. Mehernosh Bhagat (Noticee No.3)
Holding
The Noticees were found liable for front running in 17 instances where material non-public information about Alpna Enterprises' substantial impending orders was communicated by Noticee No.3 to Noticee No.2 and exploited by Noticee No.1, generating ₹48,11,373 in unlawful profits constituting approximately 66% of total profits during the investigation period. Disgorgement of such profits was directed to be credited to the Investor Protection and Education Fund.
Full text
Page | 2 Order in the matter of trading activities of M/s MBM Financial Services, suspected to be front- running the trades of M/s Alpna Enterprises
Page | 3 Order in the matter of trading activities of M/s MBM Financial Services, suspected to be front- running the trades of M/s Alpna Enterprises SERVICE OF SCN, REPLIES AND HEARING
Page | 4 Order in the matter of trading activities of M/s MBM Financial Services, suspected to be front- running the trades of M/s Alpna Enterprises a) There is an inordinate, unreasonable, and unjustified delay of 2.5 years in the issuance of the SCN. The alleged transactions pertain to the period from December 01, 2021 to June 30, 2022, and such a prolonged delay has caused grave prejudice to the Noticees.
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Source: SecMarx — sebi:QJA/MN/IVD/ID13/31448/2025-26. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.