Description

SEBI issues enforcement order against Prijesh Kurani and six associated entities for front running trades of big client Anustup Trading Private Limited during January 2022 to February 2023.

Summary

SEBI has issued an enforcement order under Sections 11(1), 11(4), 11(4A), 11B(1), 11B(2) read with Section 15HA of the SEBI Act, 1992 against seven noticees for alleged front running of trades of a big client (BC), Anustup Trading Private Limited. The investigation covers trading activity during January 1, 2022 to February 28, 2023, with alleged violations of the SEBI Act and PFUTP Regulations, 2003.

Key Points

  • Seven noticees are named: Prijesh Kurani (main front runner), Navnit Gadoya, Bharati Navnit Gadoya, Rekha Arun Kurani, Dharini Kurani (family network), and Vilpa Vora and Pranav Vora (suspected information carriers)
  • Prijesh Kurani is identified as the primary front running entity; Noticees 2–5 are his father-in-law, mother-in-law, mother, and wife respectively
  • Vilpa Vora (Noticee 6) was a registered Authorized Person (AP) of Marfatia Broking Pvt. Ltd., the stock broker handling orders for BC Anustup Trading Private Limited
  • Pranav Vora (Noticee 7), husband of Vilpa Vora, operated the trading terminal, communicated with clients, and directed dealers
  • The network was connected through family ties, shared addresses, shared email IDs, and WhatsApp communication
  • SEBI’s investigation assessed whether trades constituted front running of the BC’s orders and whether SEBI Act and PFUTP Regulations were violated

Regulatory Changes

No new regulatory changes introduced. The order applies existing provisions under:

  • Section 11(1), 11(4), 11(4A), 11B(1), 11B(2) of the SEBI Act, 1992
  • Section 15HA of the SEBI Act, 1992
  • Rule 5 of the SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995
  • SEBI (Prohibition of Fraudulent and Unfair Trading Practices in Securities Market) Regulations, 2003 (PFUTP Regulations)

Compliance Requirements

  • Authorized Persons registered with stock brokers must not misuse access to client order information for personal or connected-party trading benefit
  • Family members and associates of persons with privileged access to client orders must not engage in trades that precede or anticipate those orders
  • Stock brokers are implicitly reminded of their obligation to ensure Authorized Persons comply with PFUTP Regulations and do not front run client trades

Important Dates

  • Investigation Period: January 1, 2022 to February 28, 2023
  • Order Date: April 2026
  • Case Reference: QJA/SS/IVD-1|RO_LO_CELL/ID5|RO_LO_CELL/32399/2026-27

Impact Assessment

This order reinforces SEBI’s active surveillance and enforcement against front running networks operating through Authorized Persons with privileged access to large client order flows. The case highlights systemic risk posed when APs or dealers leverage their position to tip off connected individuals ahead of big-ticket trades. The order signals that SEBI will pursue entire networks—including family members used as conduits—and not just the primary front runner. Market intermediaries, particularly brokers employing APs, should review access controls and surveillance mechanisms for early detection of such patterns.

Impact Justification

High importance as a SEBI enforcement order invoking Sections 11, 11B, and 15HA of the SEBI Act against a network of seven individuals for front running; medium impact as it targets specific named entities rather than broad market participants.