Giving information on Wednesday, Axis Securities said that it has settled a case with the market regulator SEBI related to front-running trades by its former employee Vikrant Bhimrao Kadam and his friend. The company instead had to pay Rs 14.62 lakh as settlement amount. It was alleged that Axis Securities, as a stock broker, failed to exercise due diligence in the matter in its dealer and branch manager compliance policy, PTI reported.
disposal of urgent proceedings
According to the news, the order came after Axis Securities filed an application before the Securities and Exchange Board of India (SEBI), proposing to settle the violations of broker rules without admitting or rejecting the findings of fact and conclusions of law. Had gone. In its settlement order, Sebi said the broker returned the settlement amount of Rs 14.62 lakh and consequently the urgent proceedings initiated under the show cause notice dated June 4, 2024 against Axis Securities are disposed of.
Vikrant Bhimrao Kadam is no longer an employee
The market regulator said in a statement that alleged frontrunner Mandar Ulhas Bhatkar is no longer an employee of or associated with Axis Securities in any way, and Vikrant Bhimrao Kadam is no longer an employee of Axis Securities. Axis Securities said it has strengthened its operations through process reviews and maintains zero tolerance for unethical practices, thereby ensuring the highest standards of integrity.
Suspected of front-running trade
The regulator had investigated the trading activities of Mandar Ulhas Bhatkar and certain other entities related/associated with him, who are suspected to be carrying out front-running trades of SVI Consolidated Pvt Ltd (big client, client of Axis Securities). The investigation, prima facie found that Vikrant Bhimrao Kadam, who worked as a dealer with Axis Securities, and his childhood friend Bhatkar, were front-running trades of big clients in the equity and derivatives segment of NSE .
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