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In a recent order, SEBI has found instances of front running by an employee of India’s largest life insurer, LIC India.
The employee Yogesh Garg who was administrative officer at LIC along with his family members Sarita Garg and Kamlesh Agarwal and HUFs Ved Prakash HUF and Sarita Garg HUF allegedly made Rs.2.44 crore through front running.
SEBI asked Garg and his family members and HUF to deposit Rs.2.44 crore in an escrow account with a scheduled commercial bank within 15 days.
The market regular has also banned Yogesh Garg and family/HUF from dealing in securities markets until further order.
In a communication, LIC said that the company has fired Yogesh Garg from his services as an administrative officer. LIC also clarified that the company has put robust controlling mechanisms with best practices to prevent any kind of front-running activity. It said, “All stringent measures for transactional hygiene of dealing room are put in place, i.e., entry by biometric, CCTV coverage, restriction on electronic gadgets, etc.”