Axis Mutual fund is not the only case the Securities and Exchange Board of India (Sebi) is probing following allegations of fund managers and dealers front running stocks. The regulator is investigating at least three other cases, said a senior Sebi official.
Front running is the practice of trading in securities ahead of large client orders.
Sebi’s increased scrutiny of the so-called front running by fund managers and dealers is largely because of the changes in surveillance norms to adapt to new ways manipulators are gaming the system and evolving methods of fraud, the official said.
