sebi:WTM/SM/IVD/ID4/22209/2022-23
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Facts / Headnote
Prima facie front-running found; Noticees restrained from buying, selling or dealing in securities until further orders, Noticee no. 1 restrained from associating with any SEBI-registered intermediary, INR 1,67,70,060 impounded jointly and severally with direction to credit to interest-bearing Escrow Account with lien in favour of SEBI, bank/demat/MF freeze, asset inventory in 7 working days; order to be treated as show cause notice for disgorgement with interest, market restraint and penalty.
Provisions invoked
- s. 11B
- s. 11(4)
- s. 19
- s. 12A
- s. 15H
Regulations
- Reg. 4
- Reg. 3
- Reg. 2
Parties
- Mr. Gaurav Girish Dedhia (Noticee no. 1, Chief Dealer)
- Ms. Kajal Ilesh Savla (Noticee no. 2)
Holding
SEBI prima facie held that Noticee no.1, as Chief Dealer, misused non-public knowledge of Big Clients' impending orders to front-run through his sister Noticee no.2's account in SSB/BBS patterns, violating Section 12A and PFUTP Regulations, and therefore restrained the Noticees, impounded INR 1,67,70,060 jointly and severally, and issued show-cause for disgorgement, debarment and penalty.
Full text
_______________________________________________________________________________________ Order in the matter Front running by Kajal Savla Page 2 of 37
_______________________________________________________________________________________ Order in the matter Front running by Kajal Savla Page 3 of 37
_______________________________________________________________________________________ Order in the matter Front running by Kajal Savla Page 4 of 37
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Source: SecMarx — sebi:WTM/SM/IVD/ID4/22209/2022-23. 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.