SEBI’s Adjudicating Officer issued Order No. Order/JS/VC/2026-27/32400 against Prrsaar Sampada Private Limited (formerly Prrsaar Commodities Private Limited), a SEBI-registered stock broker (PAN: AAACK1089Q), for alleged violations related to front running of Axis Mutual Fund trades. The case concerns Prrsaar’s client, M/s. Wessel Consultancy Pvt. Ltd., which allegedly front-ran Axis MF trades on 70 instances between April 1, 2020 and March 31, 2022, while trading through Prrsaar’s platform.

Key Points

• Prrsaar Sampada Private Limited is charged under clause A(1), A(2), and A(5) of Schedule II read with regulation 9(f) and regulation 26(xix) of SEBI (Stock Brokers) Regulations, 1992
• Client M/s. Wessel Consultancy Pvt. Ltd. is alleged to have front-run Axis Mutual Fund trades on 70 instances: 20 in the equity segment and 50 in the equity derivatives segment
• Five highest-profit front running instances were examined in detail during the investigation
• Wessel’s traded quantity matched Axis MF’s traded quantity in the range of 26.98% to 92.29% in four of the five examined instances
• Wessel’s traded quantity as a percentage of Axis MF’s traded quantity ranged from 2.54% to 10.80% across the five front running instances
• Axis MF’s trading volume ranged from 1.98% to 45.87% of the particular day’s total trading volume on the five examined instances
• Show Cause Notice (Ref. No. DIS/5835/2026) was issued on February 16, 2026 under section 15-I of the SEBI Act
• Adjudicating Officer was appointed on January 09, 2026 under section 15-I(1) of the SEBI Act

Regulatory Changes

No new regulatory changes are introduced. This is an enforcement action applying existing provisions of:

• SEBI (Stock Brokers) Regulations, 1992 — clause A(1), A(2), A(5) of Schedule II; regulation 9(f); regulation 26(xix)
• SEBI Master Circular No. SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/90 dated June 17, 2025 — clauses 33.7.1 and 33.7.4
• Section 15HB and Section 15-I of the SEBI Act, 1992

Compliance Requirements

• Stock brokers are required to implement robust surveillance mechanisms to detect and prevent front running activity by their clients
• Brokers must monitor client trading patterns relative to large institutional orders (such as mutual fund trades) to identify suspicious correlated trading
• Brokers are obligated under Stock Brokers Regulations to maintain adequate systems and controls to prevent market abuse by clients trading on their platform
• Non-compliance with surveillance and client monitoring obligations can result in penalties under section 15HB of the SEBI Act

Important Dates

• April 1, 2020 – March 31, 2022: Investigation period covering alleged front running activity
• January 9, 2026: Appointment of Adjudicating Officer
• February 16, 2026: Show Cause Notice (Ref. No. DIS/5835/2026) issued to Prrsaar Sampada Private Limited
• 2026-27: Adjudication order issued in financial year 2026-27 (Order No. Order/JS/VC/2026-27/32400)

Impact Assessment

This adjudication order is a targeted enforcement action with moderate market impact. It reinforces SEBI’s active pursuit of front running cases involving institutional investors such as mutual funds. Stock brokers are put on notice that they bear supervisory responsibility for detecting suspicious trading patterns by their clients, particularly when those patterns correlate with large institutional order flows. The case highlights the surveillance obligations of brokers under the Stock Brokers Regulations and the potential liability arising from failure to prevent market abuse. The 70-instance front running pattern over two years underscores the need for real-time and periodic trade surveillance systems at the broker level. There is no direct impact on listed securities or broader market operations.