SEBI Bans 12 Entities for 5 Years in Front-Running Case, Imposes ₹90 Lakh Fine

• SEBI has banned 12 entities from the securities market for 5 years due to their involvement in front-running.
• A total fine of ₹90 lakh has been imposed, and they must deposit illegal gains of ₹1.07 crore with 12% annual interest.
• Front-running is an illegal practice where entities use prior inside information about large deals to profit from share price changes.
• Paresh N Bhagat, Chairman of Mangal Keshav Financial Services, and his dealers Ashish S Parekh and Rajesh Joshi were found to have shared Non-Public Information (NPI).
• This NPI was used by Nagendra S Dubey and Chirag Atul Pithadia to place orders in connected entities' accounts before the large client's orders, constituting fraudulent trade practices.

Why It Matters: SEBI has taken strict action against 12 entities for front-running, banning them for 5 years and imposing heavy fines.