Reliance Securities terminates 3 traders named by Sebi in front-running case

The brokerage house also emphasised that its internal checks and balances related to trading and execution are fully compliant with all requirements.

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In a statement, RSL said its three traders have not only violated internal and regulatory guidelines but have also given false undertakings.
NEW DELHI: Reliance Securities on Tuesday said it has terminated the services of three traders named by markets regulator Sebi in a front-running case.

The brokerage house also emphasised that its internal checks and balances related to trading and execution are fully compliant with all requirements.

On Friday, Sebi barred 27 entities from the capital market after it unearthed a major case of front-running by some dealers of the brokerage house and their connected entities by using their prior access to sell and buy orders by Tata Absolute Return Fund.


The 27 entities included three dealers of Reliance Securities Ltd (RSL).

In a statement, RSL said its three traders have not only violated internal and regulatory guidelines but have also given false undertakings.

Their actions are clearly in breach of their undertakings given to RSL and also in violation of RSL's internal policy as well as Sebi rules and regulations, it added.
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Further, it said the traders acted and indulged in the front-running activities outside the firm and through their own respective family and friends' network.

"At RSL, we have zero tolerance for such behaviour and any breach of law or non-compliances. In the light of this serious breach, RSL has immediately terminated these three traders from their services, with all their settlement dues withheld," the company said.

RSL also said that it will continue to comply with all regulatory requirements "not only in the letter, but also in the spirit".

In the interim order passed Friday, Sebi said that majority of the orders of the big client (Tata Absolute Return Fund) were being placed through RSL and these orders were being placed through four dealers at the brokerage firm.
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Out of them, three dealers -- Harshal Ramnik Vira, Bhavesh Gandhi and Abhijeet Nandkumar Jain -- were found to be connected with 10 other entities who were prima facie found to have traded depending on the impending orders of the Tata fund.

By indulging in such activities, the entities, prima facie, violated provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norm, Sebi noted.
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