IIFL group front running case: Sebi bans 6 people

The Securities and Exchange Board of India (Sebi) has banned six persons — Santosh B Singh, Adil Gulam Suthar, Virendra Pratap Singh, Neha Virendra Singh, Gulammohammed Gulamabbas Shaikh and Mohammedidrish A Shaikh — from the securities market till further directions in a case involving ‘front running’ in the India Infoline group (IIFL group). The six entities are permitted to settle the pay-in and pay-out obligations in respect of transactions which have taken place before the close of trading on the date of this order, Sebi said in an order. It also directed for impounding of the bank accounts of the entities to the extent of amount mentioned and deposit the proceeds from the front running trades. Front-running is trading in a stock or any other financial asset by a broker who has inside knowledge of a future transaction that is about to affect its price substantially.