Description
SEBI has restrained four entities — Sunny Bhatia, Surbhi Chopra Bhatia, Mamta Rani, and Kumar Ashok — from accessing the securities market for 2 years each for front-running trades of big client Sarvottam Securities Private Limited.
Summary
SEBI has passed an order (Ref: QJA/MN/IVD-1/ID3/32250/2025-26) dated March 24, 2026, restraining four entities from accessing the securities market for front-running the trades of big client M/s Sarvottam Securities Private Limited. The entities were found to be consistently placing orders ahead of Sarvottam Securities in the equity derivatives segment, squaring off positions whose orders predominantly matched with Sarvottam’s orders. The entities traded through Findoc Investmart Private Limited and Kotak Securities Limited.
Key Points
- Four entities debarred for 2 years each from buying, selling, or accessing securities markets directly or indirectly
- Entities belong to the same group and traded through Findoc Investmart Pvt. Ltd. and Kotak Securities Ltd.
- Front-running was identified in the equity derivatives segment against big client Sarvottam Securities Pvt. Ltd.
- Square-off orders placed by the Noticees were consistently matched with Sarvottam’s orders
- Debarred entities may close/square off existing open derivative positions within 3 months from the order date or at contract expiry, whichever is earlier
- Order comes into force with immediate effect
Debarred Entities
| Noticee | Name | PAN | Debarment Period |
|---|---|---|---|
| 1 | Mr. Sunny Bhatia | AJLPB7728A | 2 years |
| 2 | Mrs. Surbhi Chopra Bhatia | ASOPC0887D | 2 years |
| 3 | Mrs. Mamta Rani | CEPPR5248A | 2 years |
| 4 | Mr. Kumar Ashok | DWOPK9147P | 2 years |
Regulatory Changes
No new regulatory framework changes. This is an enforcement action under Sections 11(1), 11(4), 11(4A), 11B(1), and 11B(2) of the SEBI Act, 1992, read with Rule 5 of the SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995.
Compliance Requirements
- All NSE members must take note of the debarment order and ensure the listed entities are not allowed to trade through their platforms
- Members must refer to the consolidated list of SEBI-debarred entities on the NSE website: https://www.nseindia.com/regulations/member-sebi-debarred-entities
- Members must ensure the debarred entities do not access securities markets directly or indirectly
- For queries, members may email: dl-invsg-all@nse.co.in
Important Dates
- March 24, 2026: SEBI order date; order comes into force with immediate effect
- Within 3 months from March 24, 2026 (by June 24, 2026): Deadline for debarred entities to close/square off any open derivative positions
Impact Assessment
This enforcement action has direct compliance implications for all NSE members who must immediately restrict the four named entities from market access. The 2-year debarment is a significant regulatory penalty reflecting the seriousness of front-running violations in equity derivatives. Members using Findoc Investmart or Kotak Securities as intermediaries should verify compliance controls are in place. The order reinforces SEBI’s ongoing scrutiny of front-running activity involving large institutional clients and the potential misuse of order-flow information.
Impact Justification
SEBI enforcement order debarring four entities for 2 years each for front-running in equity derivatives; immediate effect with implications for NSE members to ensure compliance regarding these debarred entities.