sebi:SO//PSD/2025-26/8315

SEBI · SEBI · 2025-05-23 · Ananth Narayan G. and Amarjeet Singh, Whole Time Members

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Settled

Provisions invoked

• s. 19
• s. 15J

Regulations

• Reg. 25
• Reg. 28
• Reg. 3(a)
• Reg. 23

Holding

Any proceedings that may be initiated against the Applicants for the alleged front-running of Marcellus group trades are settled on the revised terms on a neither-admit-nor-deny basis, and SEBI shall not initiate enforcement action for the said violations subject to Regulation 28.

Full text

2 8312/2025 BW Traders AAXFB6487H SO//PSD/2025- 26/8312 (The aforementioned entities are hereinafter collectively referred to as “the Applicants”) IN THE MATTER OF FRONT RUNNING OF THE TRADES OF BIG CLIENTS

3 2.3 The orchestration of the front-running scheme is allegedly attributed primarily to Ashwin Somchand Sheth, the uncle of Kushal Rajesh Sheth. It is alleged that Ashwin Somchand Sheth either placed orders or instructed others to place orders in the trading accounts of the family members, relatives or other connected entities while possessing the non-public information. Further, the information was also passed on to Amit Mahida, who was also placing Front Running trades in his wife’s account viz, Krishna Amit Mahida. The transfer of this crucial information from Kushal Rajesh Sheth to Ashwin Somchand Sheth was facilitated through multiple channels, including normal phone calls, WhatsApp chat, WhatsApp calls, WhatsApp images, and physical meetings.

4 3 Ashwin Somchand Sheth HUF ₹44,00,000/- ₹32,94,010.80/- Voluntary debarment from the securities market for a period of 6 months. 4 Ms. Kalpana Ashwin Sheth ₹44,00,000/- ₹16,68,719.45/- Voluntary debarment from the securities market for a period of 6 months. 5 Mr. Somchand P Sheth ₹44,00,000/- ₹23,21,306.03/- Voluntary debarment from the securities market for a period of 6 months. 6 Somchand P Sheth HUF ₹44,00,000/- ₹23,41,591.79/ Voluntary debarment from the securities market for a period of 6 months. 7 Mr. Rajesh Somchand Sheth ₹44,00,000/- ₹9,69,643.96/- Voluntary debarment from the securities market for a period of 6 months. 8 Rajesh Somchand Sheth HUF ₹44,00,000/- ₹11,74,620.46/- Voluntary debarment from the securities market for a period of 6 months. 9 Ms. Dharmishtha Rajesh Sheth ₹44,00,000/- ₹8,86,399.48/- Voluntary debarment from the securities market for a period of 6 months. 10 Ms. Aarti Rishi Shah ₹44,00,000/- ₹7,36,801.58/- Voluntary debarment from the securities market for a period of 6 months.

Source: SecMarx — sebi:SO//PSD/2025-26/8315. 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.