SC upholds Sebi order against 3 defaulters in 'front-running' cases

Dipak, Kanaiyalal and Anandkumar held guilty of violating FUTP regulations; fund manager Passport India Investment also implicated in case

The Supreme Court has upheld a 2011 order by the Securities and Exchange Board of India (Sebi), giving it a boost while prosecuting 'front-running' cases.
 

Front-running is referred to buying or selling of securities ahead of a large order so as to benefit from the subsequent price move.

Sebi's powers in the matter came under the cloud after the Securities Appellate Tribunal (SAT) in 2012 struck down the regulator's order against Dipak Patel, an employee of a Mauritius-based fund manager and his relatives, who executed trades based on information passed on by him. SAT's position was that the front-running rules