Market regulator Securities and Exchange Board of India (SEBI) has barred Vishvanath Goswami, Umang Chaturvedi, Shyam Chaturvedi and Vinod Kumar Chaturvedi from accessing the securities market for two years and imposed a penalty of ₹5 lakh each aggregating to ₹20 lakh in a front-running case involving 350 trades linked to a large foreign portfolio investor (FPI).
In a detailed 77-page order, SEBI has brought out a classic case of front running, where non-public information about impending large trades was allegedly misused to generate unlawful gains. The trades in question were executed by Societe Generale, referred to as the 'big client', through Antique Stock Broking Ltd.
According to the regulator, Atul Chaturvedi, a sales trader at the brokerage, had prior access to confidential trading instructions and allegedly shared this information with connected entities. This enabled them to place trades ahead of the big client’s orders and benefit from the resulting price movements.
SEBI found that the four noticees acted on such information and executed trades in the same securities just before the big client’s transactions. The front-running activity spanned 101 trading days between January 2022 and December 2023, covering 350 instances. In a majority of these trades, the big client accounted for over 50% of market volume, indicating its ability to significantly influence prices.
The order notes that the entities followed predictable trading patterns such as 'buy-buy-sell' and 'sell-sell-buy' to exploit price movements triggered by the large orders. SEBI said such practices fall squarely within the ambit of fraudulent and unfair trade practices and undermine market integrity.
The regulator also relied on strong circumstantial evidence to establish links between the accused and the source of information. These included call data records, shared IP addresses, fund transfers and close familial relationships. In certain cases, trading accounts appeared to have been opened specifically for executing such trades and were later closed after the investigation commenced.
SEBI pointed out that some entities, including the alleged information conduit Atul Chaturvedi, had earlier settled the matter without admitting or denying the findings. However, it clarified that such settlements do not preclude action against other noticees who chose not to settle.
The noticees denied the allegations and raised procedural objections, including seeking complete trade logs and cross-examination. SEBI rejected these submissions, stating that all relevant material had been provided and confidential third-party data could not be disclosed. It also noted that the noticees failed to offer any plausible explanation for their trading behaviour.
Terming front running a 'heinous fraud], SEBI reiterated that the misuse of non-public information whether directly or through associates is a serious violation of securities laws. The order underscores the regulators continued focus on tackling insider-driven market abuse through enforcement actions, including market bans and monetary penalties.
Why HDFC Bank Chairman’s Cryptic Exit Comment Demands Introspection
Sucheta Dalal,
27 March 2026
In banking, confidence can evaporate faster than capital. The point was driven home on 18 March 2026 when the cryptic resignation letter of HDFC Bank’s part-time chairman, Atanu Chakraborty, triggered a sharp market reaction and...
Elite Investment Advisory Services’ Registration Cancelled by SEBI
Moneylife Digital Team
26 March 2026
Market regulator Securities and Exchange Board of India (SEBI) has cancelled the registration of Elite Investment Advisory Services, a proprietary firm run by Rajiv Kumar Singh, after finding a series of serious violations ranging...
SEBI Cracks Down on TradeTron-linked Brokers; Slaps ₹16 Lakh Penalties over ‘Assured Returns’ Claims
Moneylife Digital Team
26 March 2026
In a series of adjudication orders, the market regulator, Securities and Exchange Board of India (SEBI), has imposed total penalties of ₹16 lakh on multiple stock brokers for their association with the algorithmic trading platform...
SEBI Censures Streetgains Research Services, Bars It from Taking New Clients for 1 Month over Misleading Return Assurances
Moneylife Digital Team
25 March 2026
Market regulator Securities and Exchange Board of India (SEBI) has issued a regulatory censure against Streetgains Research Services, a research analyst entity run by Kumar Venkataramegowda Santhosh, and barred it from onboarding new...
