Mumbai : Busting a major ‘front running’ case in the stock market, Sebi ordered impounding of unlawful gains worth nearly Rs 15 crore from brokerage firm Sharekhan and 15 other entities. The order comes a day after French giant BNP Paribas announced acquisition of home-grown brokerage firm Sharekhan in an estimated Rs 2,000-crore deal.
Front running refers to an illegal practice in stock market where an entity trades on the basis of advance information from a broker or analyst before the information has been made available to their clients.
The case refers to ‘front running’ in at least 29 shares including Idea Celluar, Suzlon Energy, Jet Airways, DLF, Cairn India, ICICI Bank, RCOM, Indian Hotels, HDFC Ltd, L&T, Unitech, Yes Bank, Videocon, JSW Steel and Hindalco. The order follows a Sebi probe into suspected front- running by certain entities between March 2009 to March 2011.
