Archive · 17 Jan 2026
SEBI Bans 12 Entities for 5 Years in Front-Running Case
The Securities and Exchange Board of India (SEBI) has banned 12 people and companies from the stock market for 5 years.
They were caught doing something called front-running, which means they used secret information about big trades to make money before those trades happened.
SEBI also fined them a total of Rs 90 lakh and ordered them to return the money they illegally earned, which is over Rs 1.07 crore.
The main people involved were dealers who worked for a big client and shared this secret information with their family and friends.
SEBI said this was fraud and punished them to keep the market fair.
SEBI banned 12 entities for 5 years for front-running trades involving non-public information.
A total fine of Rs 90 lakh was imposed on the entities, with individual fines ranging from Rs 5 lakh to Rs 15 lakh.
The entities were ordered to disgorge illegal gains of over Rs 1.07 crore, plus 12% interest.
Primary dealers Ashish S. Parekh and Rajesh Joshi were fined Rs 15 lakh each for their roles.
The ban and penalties were imposed to prevent fraudulent use of non-public information for personal gain.
- Who
- 12 entities, including dealers Ashish S. Parekh, Rajesh Joshi, and others connected to Paresh N Bhagat, Chairman and Managing Director of Mangal Keshav Financial Services LLP (MKFS)
- What
- SEBI has banned these entities for 5 years and imposed fines for front-running trades
- When
- The final order was passed on Friday, with the ban effective from December 26, 2022, for most entities
- Where
- India, under the jurisdiction of the Securities and Exchange Board of India (SEBI)
- Why
- The entities were found guilty of front-running trades, using non-public information for personal gain, which SEBI deemed as fraudulent activity
- Regulator
- Securities and Exchange Board of India (SEBI)
- Number of Entities Banned
- 12
- Duration of Ban
- 5 years
- Total Fine Imposed
- Rs 90 lakh
- Illegal Gains to be Disgorged
- Over Rs 1.07 crore
- Primary Dealers Fined
- Ashish S. Parekh and Rajesh Joshi (Rs 15 lakh each)
- Conduit Dealers Fined
- Nagendra S. Dubey and Chirag Atul Pithadia (Rs 10 lakh each)
- Other Entities Fined
- 8 entities, including Dipa Ashish Parekh and Kashmira Joshi (Rs 5 lakh each)