sebi:WTM/AB/IVD/ID3/16889/2022-23
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Noticees found liable for front running; directed to disgorge unlawful gains with interest, monetary penalties imposed under Section 15HA, and market access restrained for 2-3 years
Provisions invoked
- s. 11B
- s. 11
- s. 15
- s. 19
- s. 12A
- s. 15H
- s. 15J
- s. 11C
- s. 15F
- s. 28A
- s. 463
- s. 11(5)
Regulations
- Reg. 4
- Reg. 3
- Reg. 2(1)(c)
- Reg. 3(a)
- Reg. 4(2)(q)
Parties
- Vaibhav Dhadda
- Alka Dhadda
- Arushi Dhadda
- Pramod Jain (HUF)
- Beena Jain
- Aditya Barla
- Sumit Kanungo
- Prashant Jain
- Pranay Vaid
- Siddharth Jain
- Riya Jain (Kanungo)
Holding
The 11 Noticees were held liable for front running the trades of 21 Fidelity Group entities by trading on the basis of non-public information about impending large orders, in violation of Sections 12A(a), (b), (c) of the SEBI Act and Regulations 3(a)-(d), 4(1), 4(2)(q) of the PFUTP Regulations. They were directed to disgorge unlawful gains with interest, pay monetary penalties, and were restrained from accessing the securities market for 2-3 years.
Full text
Final Order in the matter of Front Running: Various Funds of Fidelity Group Page 1 of 121 WTM/AB/IVD/ID3/16889/2022-23 SECURITIES AND EXCHANGE BOARD OF INDIA FINAL ORDER
Final Order in the matter of Front Running: Various Funds of Fidelity Group Page 2 of 121 1. Present proceedings have emanated from an interim order cum show cause notice dated June 07, 2021 (hereinafter referred to as, “the SCN”) issued by Securities and Exchange Board of India (hereinafter referred to as “SEBI”) to the Noticees, alleging violations of Sections 12A(a), 12A(b), and 12A(c) of Securities and Exchange Board of India Act, 1992 (hereinafter referred to as, “SEBI Act, 1992”) read with Regulation 3(a), 3(b), 3(c), 3(d), 4(1) and 4(2)(q) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations, 2003”) by Noticee No. 1 to 11.
Final Order in the matter of Front Running: Various Funds of Fidelity Group Page 3 of 121 entities of Fidelity Group by placing orders through the trading accounts of Ms. Alka Dhadda and Ms. Arushi Dhadda. Several other front running accounts were identified during investigation, as detailed hereafter.
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:WTM/AB/IVD/ID3/16889/2022-23. 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.