Share Market Scandal: Anand Rathi Settles SEBI Front-Running Case for Rs. 90.2 Lakh

In a dramatic turn of events, Anand Rathi Share and Stock Brokers Limited has settled with the Securities and Exchange Board of India (SEBI) over serious allegations of front-running in the shares of KPIT Technologies Limited—agreeing to pay a hefty ₹90.2 lakh to close the case.

The high-profile case accused the brokerage firm of violating multiple provisions of the SEBI Act, including failing to maintain transparency and due diligence in its dealings with Mehrangarh Financial Advisors Private Limited (MFAPL). SEBI alleged that Anand Rathi Share and Stock Brokers bypassed proper protocols by using its own employees' email addresses for client trades and executing off-market transactions based on outdated authorizations.

Following the issuance of a Show Cause Notice in March 2024, the firm sought to resolve the matter without admitting or denying the charges. After a review by SEBI’s Internal Committee and the High Powered Advisory Committee, the settlement terms were finalized at ₹90,20,000.

The settlement was approved by SEBI’s panel of Whole Time Members in December 2024, and the amount was paid by the brokerage in April 2025. The case has now been officially closed as per SEBI’s settlement regulations.

However, the watchdog left the door open to future action, stating that the settlement could be revisited if any concealment or breach of the terms comes to light.

Case Details

Applicant Name : Anand Rathi Share and Stock Brokers Limited

Settlement Order No. SO/AK/DS/2025-26/7814

Date: May 13, 2025

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