PowerMF Blog – Empower Yourself

Yesterday, SEBI came out with an order against one of the leading AMCs and few of its employees for Share Trading Fraud.

The fraud committed is that of ‘Front Running’ wherein the person knows the institution’s order for a stock and before the order gets executed in the market, benefits by taking personal positions on the stock and benefiting by the institutions order.

While such activities are heard to be practice by many traders, pinning the errant has always been a very difficult task.

The case under reference is one of the occassions where Regulator has been able to clearly identify the wrong done and the wrong doer.

This in my view is going to be an importnat  moment, more so by the way the wrong done is planned to be handled – by asking the wrong doer to pay the amount to the investors who have lost the money.

Hope this landmark order will be able to make the markets more efficient and investor friendly.

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