Sebi Slaps Penalties on Adhunik Dealcom for Market Front-Running

Sebi penalized Adhunik Dealcom and two individuals Rs 55 lakh for front-running trades. The investigation revealed the company's illegal activities prior to client trades of Santosh Industries Ltd, violating Sebi's PFUTP rules. The penalties include Rs 35 lakh on Adhunik Dealcom, and Rs 10 lakh each on Pradeep Kumar Poddar and Kamal Kumar Dugar.

The Securities and Exchange Board of India (Sebi) has levied fines totaling Rs 55 lakh on Adhunik Dealcom and two individuals for their roles in front-running trades, an illegal practice in the stock market.

According to Sebi's order, nine instances were identified where Adhunik Dealcom placed trade orders ahead of Santosh Industries Ltd's transactions, resulting in a profit of Rs 24.39 lakh for the company. Sebi stated that these actions breached the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) regulations.

Sebi's investigation, covering the period from June 1 to November 30, 2022, concluded with fines of Rs 35 lakh imposed on Adhunik Dealcom, and Rs 10 lakh each on Pradeep Kumar Poddar, the Director of Adhunik Dealcom Pvt Ltd, and Kamal Kumar Dugar.

(With inputs from agencies.)