Digital Scoop India Official Platform of Digital Scoop India Featuring Latest & Best News #Articles #Bytes #Entertainment #DigitalScoopMagazine
Related Articles
A recent incident involving an employee of the Life Insurance Corporation of India (LIC) has sparked regulatory scrutiny and resulted in disciplinary action. The employee was found to have engaged in front-running activities using their deceased father’s demat account, leading to their dismissal from LIC. Here’s a summary of what transpired and the responses from LIC and the Securities and Exchange Board of India (SEBI).
LIC issued a statement acknowledging the incident and emphasized that strict measures have been implemented to enhance transactional hygiene in the dealing room. The insurer stated that robust controlling mechanisms and best practices have been put in place to prevent future instances of front-running. Additionally, LIC confirmed that appropriate disciplinary action has been taken against the employee involved, resulting in their removal from services following due administrative procedures.
SEBI, the market regulator, conducted an investigation into the matter and confirmed the employee’s involvement in front-running activities. The interim order issued by SEBI highlighted the seriousness of the situation, mentioning the need to prevent further fraudulent trading activities and defalcation of gains. The findings indicated that the employee had front-run trades of a significant client, violating sections of the SEBI Act and PFUTP Regulations. SEBI’s detailed investigation into the period from January 2020 to March 2022 revealed the extent of the front-running activities.
The investigation was initiated by SEBI after receiving surveillance alerts about potential front-running activities between January 2022 and March 2022. Upon examination of trades spanning from January 1, 2020, to March 15, 2022, SEBI uncovered evidence supporting the allegations of front-running by the LIC employee. The regulator’s confirmation of the prima facie findings in the interim order solidified the seriousness of the violations and the need for stringent regulatory measures.
This incident serves as a reminder of the importance of ethical conduct and regulatory compliance within the financial sector. LIC’s actions in addressing the issue and SEBI’s proactive investigation highlight the commitment to maintaining integrity and transparency in financial markets.
Sources By Agencies
