SEBI is checking the choice broking. Market regulator is suspected of front-ringing in trade related to choice brooking. People associated with this case gave this information. Sources said that SEBI had raided the Mumbai office of the brokerage firm. This action took place from 6 to 10 January. Chowin Broking has denied any such action. He has said that the action that is being talked about is part of the regular entraction with SEBI of the brokerage firm.
Choice Broking refuses to investigate SEBI
Choice Broking has said that no search and Caesar action has been taken against Choice Equity Broking on behalf of SEBI. She has said that Choice Broking, being a regulated entity, regularly is in contact with SEBI and other authorities. Its purpose is to follow all regulatory requirements. Sources told Moneycontrol that the investigation conducted by the Surveillance Department of SEBI is allegedly related to the suspected trading activity.
A parallel system was created for front running
According to sources, SEBI officials had gone to check the front-ring of a large client. But such evidence was found that revealed that the employees of the brokerage firm were involved in front-ringing in the trade of many large clients. A person associated with the case said that it seems that a parallel trading system was created for this (front running). This trading system would be used before punching a large order of the dealer’s client.
Front running activities are illegal
The front running occurs when a person or antyty has any information that other people do not have. He can use this information to take advantage of a big client trade. Trade means the purchase and sale of securities here. This may cause great loss to large investors or clients. Such activities are considered illegal. Action may be taken against an employee or antytie if it is involved in such activity.