SEBI had named admin officer Yogesh Garg for the wrong doing
MUMBAI, Mar 20 (The CONNECT) – LIC of India has sacked an officer from its deal room after SEBI issued restrictions on him in operating in the stock market for front running.
Front-running is when a broker or an investor joins a trade because they have foreknowledge of a large confidential deal which will impact the asset’s price, according to cleartax.in.
Markets regulator Sebi had last year found that Yogesh Garg, a dealer in LIC, was in possession of non-public information regarding impending orders of LIC and acted as an information carrier. He has also, prima facie, used the account of one late Ved Parkash Garg to trade on the basis of the non-public information of LIC, Business Standard reported.
LIC said in its compliance filing said it has “removed from service” Administrative Officer Yogesh Garg following the due administrative procedure by the disciplinary authority consequent to his involvement in the front running vide DSEBI order on April 27, 2023.
“He has been removed from the services of the Corporation following the due administrative procedure by the disciplinary authority consequent to his involvement in the front running,” LIC said.
It said the Corporation have a robust controlling monitoring mechanism along with best practices to prevent any kind of front running activity. All stringent measures for transactional hygiene of dealing room are put in place, LIC added.
LIC Fires Officer For Front Running
