 "Sebi")
The Securities and Exchange Board of India (Sebi) has barred five entities from the securities market for allegedly front-running the trades of Life Insurance Corporation (LIC).
In an interim order issued on Thursday, Sebi noted that Yogesh Garg, an employee in the investment department of LIC, and four others connected to him made unlawful gains of Rs 2.44 crore by front-running the trades of LIC.
Sebi has alleged that Garg placed intraday trades and executed them just prior to the impending orders of LIC and squaring off the trades later. As he was a part of the department through which trades on behalf of the company were placed, he had access to non-public information.
However, Sebi has warranted for additional investigation if other individuals were also involved as Garg had access to non-public information of the equity segment of LIC while dealing in its debt segment.
The markets regulator has advised LIC to its extant processes and take all necessary additional measures to prevent unfair trade practices by employees.
Further, Sebi has ordered the players to impound the unlawful gains and directed them to not dispose of any assets or holdings.
