Description

SEBI issues notice of attachment of properties for recovery in front running case involving various funds of Fidelity Group against three individuals.

Summary

SEBI has issued a Notice of Attachment for Recovery Certificate No. 8995 of 2026 against three individuals - Vaibhav Dhadda, Alka Dhadda, and Arushi Dhadda - in connection with front running activities involving various funds of Fidelity Group. This enforcement action seeks recovery of amounts through attachment of properties as part of SEBI’s compliance and enforcement mechanism.

Key Points

  • Recovery Certificate No. 8995 of 2026 issued for front running violations
  • Three individuals named: Vaibhav Dhadda, Alka Dhadda, and Arushi Dhadda
  • Case involves front running in relation to various funds of Fidelity Group
  • Notice of attachment issued for recovery of dues
  • Enforcement action under SEBI’s recovery proceedings

Regulatory Changes

No new regulatory changes introduced. This is an enforcement action under existing SEBI regulations concerning front running and recovery of dues.

Compliance Requirements

  • The named individuals are subject to attachment proceedings for recovery of amounts determined by SEBI
  • Properties and assets of the respondents may be attached to facilitate recovery
  • Compliance with recovery certificate obligations is mandatory

Important Dates

  • Recovery Certificate Date: 2026
  • Notice Publication Date: January 2, 2026

Impact Assessment

This enforcement action demonstrates SEBI’s continued vigilance against front running practices in the securities market. While the direct impact is limited to the named individuals, it serves as a deterrent for market participants engaging in similar manipulative practices. The involvement of Fidelity Group funds highlights the importance of maintaining market integrity and preventing information misuse in fund management activities. The recovery proceedings reinforce SEBI’s commitment to enforcing compliance and recovering dues from violators.

Impact Justification

High importance due to enforcement action for front running violations. Medium market impact as it involves recovery proceedings against specific individuals rather than systemic market changes.