Antique Stock Broking Pays Rs29.25 Lakh To Settle Front-running Case
Moneylife Digital Team 16 April 2025
Antique Stock Broking Ltd has paid Rs29.25 lakh to resolve Securities and Exchange Board of India (SEBI) proceedings related to the broker’s alleged lapses during an investigation into suspected front-running activities involving MBM Financial Services. 
 
The settlement follows SEBI probe into the trades of MBM Financial Services which were believed to have front-run the orders of Alpna Enterprises referred to as the ‘Big Client’ between 1 December2021 and 30 June 2022.
 
SEBI, during its investigation, found that Antique Stock Broking, the broker for Alpna Enterprises, failed to maintain proper records and exercise due skill and care in handling client trades. Notably, Antique Stock Broking did not retain verifiable evidence of client order placements, as mandated under SEBI’s stockbroker regulations. Moreover, SEBI observed that the broker permitted mobile phone usage in the dealing room in violation of its internal policy, potentially facilitating unauthorised trading activity.
 
The regulator issued a show-cause notice (SCN) to Antique Stock Broking on 14 October 2024, highlighting violations of Clause A(2) and A(5) of Schedule II of the SEBI (Stock-Brokers) Regulations, 1992. Additionally, the firm breached Clause III of the SEBI circular dated 22 March 2018 which requires brokers to preserve order placement records in formats such as signed physical notes, recorded calls, or verifiable digital communication.
 
Antique Stock Broking chose to settle the matter without admitting or denying the findings. The broker submitted a settlement application on 26 November 2024 under SEBI Settlement Proceedings Regulations, 2018. The matter was deliberated by SEBI internal committee (IC) on 20 December 2024 which proposed a settlement amount of Rs29.25 lakh. Antique Stock Broking agreed to the proposed terms and submitted revised settlement terms on 31 December 2024.
 
Subsequently, the high-powered advisory committee (HPAC) reviewed and recommended the settlement, which was approved by the SEBI Panel of whole-time members (WTM) on 20 February 2025. The decision was communicated to Antique Stock Broking on 3 March 2025. SEBI received confirmation of the payment on 2 April 2025.
 
SEBI, through an order dated 15 April 2025, officially disposed the proceedings against Antique Stock Broking. However, the settlement order clarified that SEBI retains the right to initiate enforcement actions if it finds any misrepresentation, breach of settlement terms, or discrepancies in the process.
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