Antique Stock Broking pays Rs 22.4 lakh to settle alleged front-running probe with Sebi

New Delhi, Sep 19 (PTI) Mumbai-based Antique Stock Broking has settled with Sebi a case related to alleged front-running of trades of a large client, after paying Rs 22.44 lakh towards settlement charges, according to an order.

Front-running refers to an illegal practice in the stock market where an entity trades based on advance information from a broker or analyst before the information has been made available to its clients.

The order came after Antique Stock Broking filed a settlement application in April this year and proposed to settle the instant proceedings initiated against it "without admitting or denying the findings of facts and conclusions of law".

"...it is hereby ordered that the proceedings initiated against the applicant vide SCN dated February 20, 2025, is disposed of in terms of settlement terms," Sebi's Quasi Judicial Authority Santosh Shukla said in the order.

The matter came to light after the Securities and Exchange Board of India (Sebi) carried out an investigation to ascertain whether the trades of an entity (big client) were front-run by certain entities, i.e Chaturvedi Group, during the period January 1, 2022, to December 8, 2023.

Following the investigation, a show cause notice was issued on February 20, 2025, to Antique Stock Broking, wherein it was alleged that the applicant failed to exercise due skill and care as one of its dealers used mobile phone inside the dealing room and did not maintain record of order placements by the big client.

Pursuant to filing a settlement application, Antique Stock Broking filed revised settlement terms, and paid Rs 22.44 lakh to the regulator which was confirmed by Sebi on September 17.

Sebi stated that the proceedings initiated through the show cause notice stand disposed of in terms of the settlement.

The regulator, however, clarified that it retains the right to act if representations made by the brokerage company are later found untrue, or if there is any breach of the settlement terms.

On Thursday, Motilal Oswal Financial Services Ltd paid Rs 34.85 lakh and settled the proceedings in connection with alleged lapses related to suspected front-running of trades of a large client. PTI HG HG MR