Axis Securities Settles Front-Running Case with SEBI Amid Compliance Revamp

Axis Securities has settled a front-running case with SEBI, involving former employee Vikrant Bhimrao Kadam and his associate, by paying a settlement amount of Rs 14.62 lakh. Although not admitting guilt, the company revamped its policies to prevent unethical practices and ensure compliance with regulatory standards.

Axis Securities has recently resolved a front-running trading case, involving a former employee and his acquaintance, with the Securities and Exchange Board of India (SEBI). The company paid Rs 14.62 lakh to settle the case, while acknowledging the need for improved compliance standards.

The issue surfaced amid allegations that Axis Securities failed to perform adequate due diligence, specifically concerning its Dealer and Branch Manager Compliance Policy. SEBI's investigation revealed that ex-employee Vikrant Bhimrao Kadam, along with his friend, conducted front-running trades, exploiting a major client's orders for profit.

In response to the incident, Axis Securities has undertaken process reviews and bolstered its operational frameworks, emphasizing a zero-tolerance approach towards unethical practices. Though it settled without admitting wrongdoing, the firm remains committed to upholding the highest levels of integrity and compliance.

(With inputs from agencies.)