Eight firms are barred from the securities markets by Sebi

Eight firms were prohibited from the securities markets by market regulator Sebi on Friday, and they also had their “unlawful gains” of Rs 1.3 crore confiscated from front-running operations.

Ashok Maheshwari, Darshan Bakul Shah, Khusboo Darshan Shah, CHL Stock Concepts Pvt Ltd, Benzer Department Stores Pvt Ltd, Chirag Mahendra Shah, and Mihir Dhirajalal Savla are the eight organizations.

When a company trades on the basis of advance information from a broker or analyst before the information has been made available to its customers, it is known as front-running, a prohibited conduct in the stock market.

Sebi discovered in its 77-page ruling that Ashok Maheshwari played a key role in providing Darshan Bakul Shah with knowledge on the Big Client’s upcoming trades, which was then used to carry out front-running trades. It said that the firms broke the Prohibition of Fraudulent and Unfair Trade Practices standards by engaging in such deals.