- August 18, 2020
- Posted by: OptimizeIAS Team
- Category: DPN Topics
Securities and Exchange Board of India (SEBI) sought to bar 27 entities from the capital market for being connected to a case of front running.
- Front running is the illegal practice of purchasing a security based on advance non-public information regarding an expected large transaction that will affect the price of a security.
- Front running is considered as a form of market manipulation and insider trading because a person who commits a front running activity expects security’s price movements based on the non-public information.