sebi:WTM/GM/IVD-ID3/07/2021-22
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Facts / Headnote
Ad-interim ex-parte order issued against 11 entities restraining them from dealing in securities market, directing impoundment of unlawful gains of Rs. 2,06,44,257 (including interest), and directing replies within 30 days
Provisions invoked
- s. 11B
- s. 11
- s. 15
- s. 19
- s. 11(1)
- s. 12A
Regulations
- Reg. 3
- Reg. 2(1)(c)
- Reg. 2
- Reg. 3(a)
Parties
- Vaibhav Dhadda (alias Avi Dhadda)
- Alka Dhadda
- Arushi Dhadda
- Pramod Kumar Jain (HUF)
- Beena Jain
- Aditya Barla
- Sumit Kanungo
- Prashant Jain
- Pranay Vaid
- Siddharth Jain
- Riya Jain (Kanungo)
Holding
SEBI issued an ad-interim ex-parte order against 11 entities for front running the trades of 11 Fidelity Group entities during February 1, 2019 to November 30, 2019, finding prima facie that the entities acted in concert under a pre-meditated scheme orchestrated by Vaibhav Dhadda, an employee of Fidelity International Ltd. The order restrained all 11 entities from securities market activity and directed impoundment of Rs. 2,06,44,257 as unlawful gains plus interest.
Full text
Interim Order in the Matter of Front Running : Various Funds of Fidelity Group Page 1 of 68 WTM/GM/ IVD-ID3 / 07 /2021-22 _____________________________________________________________________ BEFORE THE SECURITIES AND EXCHANGE BOARD OF INDIA
Interim Order in the Matter of Front Running : Various Funds of Fidelity Group Page 2 of 68 BACKGROUND 1. Securities and Exchange Board of India’s (hereinafter referred to as “SEBI”) surveillance system had generated alerts for possible instances of front running by the entity, Alka Dhadda during the period May – August, 2019.
Interim Order in the Matter of Front Running : Various Funds of Fidelity Group Page 3 of 68 ii) From the account of Arushi Dhadda orders were placed and executed before the orders of Fidelity Asian Values PLC, and she subsequently squared off positions when the orders of Fidelity Asian Values PLC were placed in the market. iii) A total of 18 entities of Fidelity Group were identified which had common scrip days with Alka Dhadda and Arushi Dhadda. Out of these 18 entities, Alka Dhadda and Arushi Dhadda had prima facie front running instances with the following 11 entities of Fidelity Group / Big Clients, who had transacted through various Trading Members: Table- 1 Sl. No. Big Client Name Trading Member
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Source: SecMarx — sebi:WTM/GM/IVD-ID3/07/2021-22. 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.