Description

SEBI has restrained 13 entities from accessing securities market for periods ranging from 1 to 3 years for front running orders of certain family trusts.

Summary

SEBI has issued an order (QJA/SS/IVD-1/ID16/31699/2025-26) dated October 23, 2025, restraining 13 entities from accessing the securities market for front running the orders of Big Client (certain family trusts). The debarment periods range from 1 to 3 years depending on the severity of involvement. The entities are prohibited from buying, selling, or dealing in securities directly or indirectly during the debarment period.

Key Points

  • 13 entities (individuals and HUFs) have been debarred from the securities market
  • Debarment periods vary: 3 years (1 entity), 2 years (7 entities), 1 year (5 entities)
  • Entities are prohibited from all securities market activities during the debarment period
  • The front running involved orders of certain family trusts referred to as “Big Client”
  • SEBI order reference: QJA/SS/IVD-1/ID16/31699/2025-26 dated October 23, 2025
  • NSE circular reference: 523/2025

Debarred Entities

3 Years Debarment:

  • Shankar Tukaram Vadatkar (PAN: ADKPV7740H)

2 Years Debarment:

  • Sakshi Shankar Vadatkar (PAN: AMOPM1205F)
  • Chaitali Shah (PAN: AMPPS4417G)
  • Shah Swapnil Uday HUF (PAN: AASHS9305J)
  • Dipesh Mehta HUF (PAN: AAHHD8379J)
  • Piyush Mehta HUF (PAN: AAPHP0325N)
  • Hansraj Randhir Shah HUF (PAN: AAAHH0445Q)
  • Raahul Hansraj Shah HUF (PAN: AARHR6643F)

1 Year Debarment:

  • Randhir Virji Shah HUF (PAN: AAEHR6492K)
  • Pinakin Hansraj Shah HUF (PAN: AAJHP5561J)
  • Punaiben Hansraj Shah (PAN: AAPPS2760Q)
  • Ankesh Mahendra Jain HUF (PAN: AATHA3966J)
  • Dr Kumaraswami R Dussa HUF (PAN: AAIHD5369P)

Regulatory Changes

No new regulatory changes. This is an enforcement action under existing SEBI regulations against front running practices.

Compliance Requirements

  • NSE members must take note of the debarred entities and ensure compliance
  • The debarred entities cannot access securities market or deal in securities in any manner during the debarment period
  • If the debarred entities have open positions in exchange traded derivative contracts as on the order date, they can close out/square off such positions within 3 months from the order date or at contract expiry, whichever is earlier
  • Updated consolidated list of debarred entities is available at: https://www.nseindia.com/regulations/member-sebi-debarred-entities

Important Dates

  • SEBI Order Date: October 23, 2025
  • NSE Circular Date: October 24, 2025
  • Debarment Effective From: October 23, 2025 (date of SEBI order)
  • Derivative Position Closure Deadline: Within 3 months from order date or contract expiry, whichever is earlier

Impact Assessment

Market Impact: Medium - affects specific individuals and HUFs rather than institutional players or broader market operations.

Regulatory Significance: High - demonstrates SEBI’s continued vigilance against front running practices and market manipulation. The varying debarment periods (1-3 years) indicate differentiated culpability among the entities.

Compliance Impact: NSE members must update their systems to prevent these entities from trading. The allowance for closing existing derivative positions within 3 months provides an orderly exit mechanism to prevent market disruption.

Additional Information

  • Full SEBI order available at: http://www.sebi.gov.in
  • Members can contact NSE Investigation Department at: dl-invsg-all@nse.co.in for queries
  • The order was issued under Sections 11(1), 11(4), 11(4A), 11B(1) and 11B(2) read with Section 15HA and 15I of the SEBI Act, 1992

Impact Justification

High severity enforcement action involving multiple entities debarred for front running. Medium impact as it affects specific individuals/HUFs rather than broader market operations.