Description

SEBI issues notice of attachment for recovery of dues in the matter of front running involving Fidelity Group funds against Vaibhav Dhadda, Alka Dhadda, and Arushi Dhadda under Recovery Certificate No. 8994 of 2026.

Summary

SEBI has issued a Notice of Attachment under Recovery Certificate No. 8994 of 2026 against Vaibhav Dhadda, Alka Dhadda, and Arushi Dhadda for recovery of dues in connection with front running activities involving various funds of Fidelity Group. This notice is part of SEBI’s enforcement proceedings to recover amounts determined through adjudication or settlement processes.

Key Points

  • Recovery Certificate No. 8994 of 2026 issued against three individuals: Vaibhav Dhadda, Alka Dhadda, and Arushi Dhadda
  • The case pertains to front running activities involving various funds of Fidelity Group
  • Notice of Attachment issued for recovery of outstanding dues
  • Enforcement action initiated under SEBI’s recovery mechanisms
  • The notice aims to attach properties/assets for recovery of determined amounts

Regulatory Changes

No new regulatory changes introduced. This is an enforcement action under existing SEBI regulations regarding recovery of dues from entities/individuals found in violation of securities laws.

Compliance Requirements

  • The named individuals (Vaibhav Dhadda, Alka Dhadda, and Arushi Dhadda) are required to comply with the recovery proceedings
  • Properties and assets of the noticees may be attached for recovery purposes
  • Non-compliance may lead to further enforcement actions including attachment and sale of properties
  • The noticees must respond to the recovery notice as per prescribed timelines

Important Dates

  • Notice Date: January 2026
  • Recovery Certificate No.: 8994 of 2026
  • Specific compliance deadlines would be mentioned in the detailed notice

Impact Assessment

Market Impact: Low to Medium - This is an individual enforcement action and does not directly impact broader market operations or trading activities.

Regulatory Impact: High - Demonstrates SEBI’s continued vigilance against front running activities and market manipulation, particularly involving mutual fund operations.

Investor Impact: Low - Direct impact limited to the individuals named in the notice, though it reinforces regulatory protection for investors against front running practices.

Precedent Value: Medium to High - Reinforces SEBI’s enforcement approach in front running cases involving fund managers and related parties, serving as a deterrent for similar violations.

Impact Justification

Recovery enforcement action against specific individuals for front running violations. High severity due to market manipulation but medium impact as it targets individual entities rather than broader market participants.