Six people have been charged by Sebi with front-running India Infoline Group (IIFL Group) trades. The IIFL AMC has made it clear that these people have nothing to do with the mutual fund industry. In a statement, the AMC said, “IIFL Asset Management Limited clarifies that certain media reports on the Securities Exchange Board of India’s (SEBI) order dated June 3, 2022, titled “Front Running by Employee of India Infoline Group,” are grossly misleading.
Sebi blocked Santosh Brijraj Singh and Adil Gulam Suthar from the market for five years on Saturday. Virendra Pratap Singh, Neha Virendra Singh, Gulammohammed Gulamabbas Shaikh, and Mohammedidrish A Shaikh were blocked for two years. Sebi noticed that these people were in charge of the trades of six IIFL Group companies, including IIFL Asset Management.
Mutual fund people thought that the group might have something to do with the Axis front-running case. Some people have also thought that Sebi’s order will affect the mutual fund industry. The AMC, on the other hand, said that “the said order refers to an old case and is against former employee Mr. Santosh Singh, who turned out to be an errant dealer.” “Therefore, the news stories about the six employees are not true,” IIFL AMC said in a statement.
The AMC said that Santosh Singh and his partner have been punished in this order. This order doesn’t punish IIFL Wealth Management Limited, IIFL AMC, or any of IIFL Wealth’s other companies. The SEBI order, both interim and final, has no effect on how IIFL Wealth, IIFL AMC, any of its subsidiaries, or any of its clients, the AMC said.
In 2021, Singh’s job at IIFL AMC came to an end.
