A former Chief Investment Officer, Deven Sangoi, and his sister, Meghana Gosar, have settled a serious case related to “front running” in trading by paying Rs 91 lakh. They also agreed to stay away from trading in the securities market for six months.
Front running is when a trader has special information about trades that will happen and buys or sells stocks based on that info to make money unfairly.
The Securities and Exchange Board of India (SEBI) looked into their activities between August 1, 2021, and April 30, 2022. They found out that Meghana executed 266 trades in regular stocks and 76 trades in stock options. Out of these, 52 trades in stocks and 18 in options were identified as front running.
In total, her unfair trades were worth Rs 42.36 crores. From these trades, she made a profit of Rs 27.77 lakh. Deven was accused of helping his sister by sharing inside information about the trades of a specific company.
After reviewing the case, SEBI accepted their proposal to settle without admitting guilt. Now, they cannot face any more serious actions from the authorities.
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