SEBI bans six persons from securities market in IIFL Group front running case

SEBI noted that these persons were front running the trades of six entities of IIFL Group, including IIFL Asset Management, also called Big 'Clients'.

The Securities and Exchange Board of India (SEBI) on Friday barred six persons from the securities market for up to five years for front running the trades of India Infoline Group (IIFL Group). In this case, a dealer of India Infoline Group and his connected entities had used "mule" accounts.

In its order, SEBI has barred Santosh Brijraj Singh, who was a dealer of IIFL Group entity and Adil Gulam Suthar from the market for five years, while it prohibited mule account holders—Virendra Pratap Singh, Neha Virendra Singh, Gulammohammed Gulamabbas Shaikh and Mohammedidrish A. Shaikh for two years.

These persons have been restrained from holding the post of director, any managerial position or associating themselves in any capacity with any listed public company.

In addition, SEBI levied a penalty of ₹10 lakh on Santosh Briraj Singh and ₹8 lakh on Adil Gulam Suthar.

SEBI noted that these persons were front running the trades of six entities of IIFL Group, including IIFL Asset Management, also called Big 'Clients'.

The regulator found that Santosh Brijraj Singh after becoming privy to the non-public information of the impending orders of the big clients, communicated the same, directly or indirectly, to his connected entity Adil Gulam Suthar.

Subsequently, both of them used the mule account sets to carry out the front running trades. They had earned significant profits while front running the trades.