Sebi to bring front-running under fraudulent and unfair trade practices regulations In a major move to curb illegal activities, securities market regulator Sebi is bringing front-running by individuals under the ambit of fraudulent and unfair trade practices (FUTP) regulations, reviving an old rule it had abandoned a decade ago. The regulator is also bringing Collective Investment Scheme (CIS) activities under the FUTP umbrella after investors cried foul over losing money to ponzi schemes.Front-running is an unethical activity whereby a person uses confidential information to buy or sell shares in a company ahead of a large order so as to benefit from the subsequent price movement.
Posted on: Tue, 13 Aug 2013 09:30:01 +0000