SEBI has barred a dealer for the Indian Life Insurance Corporation (LIC) for front-running trades on the insurance company's stock exchange. Yogesh Garg, a dealer for LIC, was prohibited by SEBI from purchasing, selling, or dealing in securities up to further orders. Additionally, SEBI has banned four of his relatives.
Yogesh Garg worked at the LIC investment division, where deals were executed on the company's behalf. Being a dealer, he served as an information carrier and had access to confidential information about LIC's upcoming orders.
According to KYC information, Sarita Garg, Kamlesh Agarwal, Ved Prakash HUF, and Sarita Garg HUF are linked to Garg by familial ties, a shared location, and a same phone number.
For the time period from January 1, 2020, to March 15, 2022, they are projected to have earned gains of ₹2.44 crore through front-running deals.
The regulator stated in its 51-page judgement that organisations like LIC are essential to the securities market and are expected to have effective mechanisms to prevent, detect, and correct any fraudulent, manipulative, or unfair trade practises by its personnel.
Until further instructions, the five noticeees are prohibited from purchasing, selling, or dealing in securities directly or indirectly in any way.