SEBI Directions in the matter of Front Running of Various Funds of Fidelity Group

Description

SEBI confirms completion of recovery proceedings for Riya Jain following SAT order modifying disgorgement amount in front running case involving Fidelity Group funds.

Summary

SEBI has confirmed completion of recovery proceedings against Riya Jain (PAN: AHKPJ1006A) following the Securities Appellate Tribunal (SAT) order dated December 15, 2025. The SAT modified the disgorgement amount collectively payable by Sumit Kanungo and Riya Jain to 15% in the matter of front running of various funds of Fidelity Group. This updates the original SEBI order from June 03, 2022 that restrained 11 entities from accessing securities markets.

Key Points

• SAT allowed appeal in part on December 15, 2025, modifying disgorgement to 15% for Sumit Kanungo and Riya Jain collectively
• Recovery proceedings completed for Riya Jain (PAN: AHKPJ1006A)
• Original SEBI order dated June 03, 2022 (NSE/INVG/52531) restrained 11 entities from securities market
• Entities prohibited from buying, selling or dealing in securities directly or indirectly
• Debarment periods range from 2-3 years depending on entity

Regulatory Changes

No new regulatory changes. This circular updates the status of enforcement actions under the existing June 03, 2022 SEBI order. The SAT modification reduced the disgorgement liability for two specific entities (Sumit Kanungo and Riya Jain) to 15% collectively.

Compliance Requirements

• Members must take note of the completed recovery proceedings
• Members should ensure compliance with debarment orders for all 11 listed entities
• Members must not facilitate trading activities by debarred entities
• Consolidated list of debarred entities available at: https://www.nseindia.com/regulations/member-sebi-debarred-entities
• Queries to be directed to: dl-invsg-all@nse.co.in

Important Dates

• June 03, 2022: Original SEBI order issued (NSE/INVG/52531)
• December 15, 2025: SAT order modifying disgorgement amount
• February 06, 2026: SEBI confirms completion of recovery proceedings for Riya Jain

Impact Assessment

Market Impact: Limited direct market impact as this is an update on existing enforcement proceedings. The original debarment orders remain in effect.

Compliance Impact: Members and market participants must continue to ensure that the 11 debarred entities do not access securities markets. The completion of recovery proceedings for one entity demonstrates SEBI’s ongoing enforcement and recovery mechanisms.

Operational Impact: No new operational changes required. Members should verify their systems continue to block transactions by the listed entities with specified PAN numbers.

Entities Subject to Restraint Order

Impact Justification

Updates on recovery proceedings completion for one entity in previously disclosed front running case. Important for compliance tracking but limited new market impact as original debarment orders remain in effect.