Sebi on Tuesday confirmed a securities market ban on five entities, including an employee of Life Insurance Corporation of India (LIC), in a case pertaining to front-running trades of the state-owned insurer
Mumbai:
Life Insurance Corporation (LIC) on Wednesday said it terminated services of Yogesh Garg against whom a confirmatory order issued by capital market regulator Sebi in front-running trades case.
Front-running refers to an illegal practice in the stock market where an entity trades based on advanced information from a broker or analyst before the information has been made available to its clients.
Sebi on Tuesday confirmed a securities market ban on five entities, including an employee of Life Insurance Corporation of India (LIC), in a case pertaining to front-running trades of the state-owned insurer.
The observations made in the present order are tentative in nature and pending further investigation. The investigation will be carried out without being influenced by any of the directions passed or any observation made either in the interim order or in the present order.
Based on the outcome of the investigation, appropriate proceedings may be initiated in accordance with law, Sebi said.
In a confirmatory order, Sebi clarified that the restraint imposed vide the interim order dated April 27, 2023, on Yogesh Garg, Sarita Garg, Kamlesh Agarwal, Ved Prakash HUF and Sarita Garg HUF from buying, selling or dealing in securities either directly or indirectly, in any manner whatsoever, shall continue until further orders.
“I find that the submissions of the noticees are insufficient to refute the prima facie conclusions drawn in the interim order.
“… no reason or grounds to differ from the prima facie findings in the interim order, and therefore, the finding in the Interim Order that the Noticees have prima facie front run the trades of the big client resulting in violation PFUTP Regulations stands confirmed,” Sebi’s whole time member Ananth Narayan G said in the order.
In April 2023, Sebi barred five entities, including an employee of Life Insurance Corporation of India (LIC), from the securities market and impounded illegal gains of Rs 2.44 crore made by them, in a case pertaining to front-running the trades of the state-owned insurer.
Also, they have been asked to “cease and desist” from engaging in any fraudulent, manipulative or unfair trade practice, including front-running.
Going by Sebi’s order, Yogesh Garg is still professionally associated with LIC.
Sebi has been informed by LIC that Yogesh Garg has been transferred from the investment department of the ompany to another department of the insurance firm.