MUMBAI: The markets regulator Securities & Exchange Board of India (SEBI) has carried out nationwide raids targeting front-running carried out by market experts appearing on a business news television channel.
The raids comprising search and seizures were carried out at the homes and offices of around half a dozen entities reportedly engaged in front-running based on illegally obtained market information for profits.
The SEBI sleuths swooped at multiple locations in Pune, Kolkata, NOIDA and Jaipur after extensive internal alert systems and external surveillance data pointed at front-running by some persons linked with a few 'market experts' airing their expertise on news channels.
According to the modus operandi, just prior to the market experts going on air to recommend certain stocks, the targeted entities would take positions on those stocks, violating the SEBI's regulations pertaining to fraudulent and unfair trade practices.
The SEBI teams have affected seizures of mobile phones, computers, laptops, tablets, drives and other physical records of these raided entities purportedly engaged in using the advance information for gains, and further investigations are underway.
Despite repeated attempts SEBI top officials were not available for their comments in the matter.