Stock broker firm Angel One has settled allegations of frontrunning of orders of a big client by one of its authorised persons by paying ₹21,64,500.
The market regulator’s settlement order added that the brokerage has also “submitted details of the corrective action/ measures put in place by it to prevent re-occurrence of similar violations.”
In a settlement order dated September 27, the Securities and Exchange Board of India said that Angel One’s authorised person named Jitendra Kewalramani was allegedly front-running trades of clients such as Bharat Kanaiyalal Sheth Family Trust (BKS Family Trust) through his own account and through trading accounts of certain other entities.
“It was further observed that all the alleged front runners, except two entities, had executed their front running trades through the Noticee. Jitendra Kewalramani, the AP of the Noticee, was alleged to be the main front runner of the front running orders executed. It was observed that the orders executed in the accounts of his clients by the AP were done without maintaining a record of the order instructions,” SEBI said in its order.