Politics · India · 2 hrs ago
Sebi fines two brokers and their directors ₹40 lakh in Axis Mutual Fund case
Sebi imposed a total penalty of ₹40 lakh on two stockbroking firms and their directors in a case involving Axis Mutual Fund trades.
Woodstock Broking, its director Suresh Kanmal Jajoo, Marfatia Stock Broking and its managing director Nishil Surendra Marfatia were each fined ₹10 lakh.
Sebi found the firms enabled an unauthorised person in Dubai to access trading terminals through ODIN software installed using remote-access application AnyDesk.
The investigation covered April 2021 to March 2022 and found that Viresh Joshi, then Axis Mutual Fund’s chief dealer, allegedly shared information about the fund’s planned trades with Prijesh Kurani.
Kurani allegedly traded ahead of the fund’s transactions using multiple accounts, a practice known as front-running.
Sebi said brokers must tightly control access to their trading systems and that allowing unauthorised access breaches securities rules.
Sebi imposed a total penalty of ₹40 lakh on Woodstock Broking, Marfatia Stock Broking and their directors in a case involving alleged front-running of Axis Mutual Fund trades.
The regulator said the brokers facilitated access to their trading terminals for an unauthorised person based in Dubai.
Sebi imposed ₹10 lakh each on Woodstock Broking, its director Suresh Kanmal Jajoo, Marfatia Stock Broking and its managing director Nishil Surendra Marfatia.
The investigation found that ODIN trading software was installed on systems used by Prijesh Kurani through the remote-access application AnyDesk.
- Who
- Sebi, Woodstock Broking, Marfatia Stock Broking and their directors. The case also involved Prijesh Kurani and former Axis Mutual Fund chief dealer Viresh Joshi.
- What
- Sebi imposed a total penalty of ₹40 lakh on the two brokers and their directors for facilitating access to trading terminals in an alleged front-running case.
- When
- Sebi issued the order on Tuesday. The investigation covered April 2021 to March 2022.
- Where
- The trades were executed from Dubai.
- Why
- Sebi found that the brokers enabled an unauthorised third party to access their trading infrastructure.
This story does not have two clearly opposing sides.
Sebi’s investigation covered alleged front-running trades involving Axis Mutual Fund.
Sebi imposed a total penalty of ₹40 lakh on the two brokers and their directors.
- Total penalty
- ₹40 lakh
- Penalty per recipient
- ₹10 lakh each
- Brokerages
- Woodstock Broking; Marfatia Stock Broking
- Investigation period
- April 2021 to March 2022
- Remote-access software
- AnyDesk
What people are saying
A Sebi-registered stock broker is expected to exercise heightened care and control over its terminal access, user chain and trading infrastructure.
Permitting/enabling terminal access to be used by a third party outside the authorised framework...is conduct that squarely falls within PFUTP Regulations.