SEBI v. Madhav Stock Vision Pvt. Ltd. and others (front running a large institutional client, 2026)

Judgment entered

✓ Checked against the primary document on October 8, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, in a single reading of the order; an independent second reading of 60 SEBI records agreed on every field for 56, the four misses being penalty amounts; a later sample of 50 of the SEBI records added on 9 October agreed on every field for 46. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.

Report an error in this record (sebi-103046-front-running-2026) by email

A July 2026 SEBI final order found that a stockbroker's proprietary desk traded ahead of orders of a very large institutional client, using information from two dealers at other brokers who overheard those orders. It orders disgorgement of about Rs 2.51 crore, one-year restraints on all six noticees and Rs 5 lakh penalties each.

The record

What was ordered

Civil penalty

—

Disgorgement

—

Prejudgment interest

—

Total relief

—

Alleged gain

—

Penalty as published

3m INR

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars. This regulator states penalties in INR. The figure is recorded as published and is not converted, so it does not appear in the USD totals or medians used elsewhere on this site.

What is alleged to have happened

The final order of 24 July 2026 was made by a SEBI whole-time member. It follows an interim order and show-cause notice of 23 April 2025, issued after searches and seizures on 4 December 2023. The six noticees are Madhav Stock Vision Pvt. Ltd. (MSVPL), a registered stockbroker, and five individuals: Jyotiswaroop Purohit and Pankit Jhaveri, dealers at another broker, Bhagwandas Gordhandas Financial Pvt. Ltd., and Rajesh Jhaveri, Ajay Jain and Rajkumar Damani, said to have passed on or acted on the information. The client concerned was a large institutional investor that the interim order called the Big Client.

SEBI's investigation covered April 2020 to December 2023 and began with its own surveillance alerts. It alleged that Mr Purohit and Mr Jhaveri could hear dealers at two other brokers, operating from the same premises, taking the client's orders, and gave that non-public information to others, who had MSVPL place orders just ahead of the client's and book the profit. Call records, proximity to dealing desks, the content of telephone conversations and profit-sharing among related entities were among the evidence.

The order accepts that case and treats MSVPL as the front runner and the others as information carriers or conduits. It records that three settlement applications had not been completed, the last being withdrawn because the noticees did not accept the terms.

The directions restrain MSVPL from dealing in its proprietary account and the five individuals from the securities market, each for one year. All six must disgorge Rs 2,51,15,698.30 jointly and severally with 12 per cent simple interest from 1 December 2023, using amounts already deposited under the interim order. Each is penalised Rs 5 lakh under section 15HA, Rs 30 lakh in all.

The record does not show an appeal, or the loss to the institutional client. It describes no criminal case.

This library tags the matter as front running. The tagging is ours, not the regulator's.

For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the order.

What technique is this, and how does it work?

This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

• Front running — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2026-07-24 SEBI final order with restraints, disgorgement and penalties

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• SEBI order
• SEBI order (PDF)

The linked release is published by the issuing regulator under its own terms. Our summary and narrative above are our own writing.

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added October 8, 2026. submit a correction.