Sharekhan Front-Running Fraud

#1
Sebi has hauled up Sharekhan for front-running clients and imposed a 15 crore fine.

http://www.sebi.gov.in/cms/sebi_data/attachdocs/1438347631669.pdf

Now the front-running itself though a serious issue doesn't affect me much since my turnover is very low. But the worrying part is that SEBI considered freezing its accounts and only decided against it because it would affect customers. Also my account being online POA is signed over to them.

Is it safe to move the account elsewhere? Concerns are that Sebi decides to freeze accounts anyway and potential abuse of POA.

Considering BNP Paribas is buying Sharekhan for 2400 crores the amounts involved are small. Wonder how this affects the deal.
 

Alchemist

Administrator
Staff member
#2
The amount involved is small and Sharekhan won't have any problem paying it.

The question is do you trust Sharekhan or not.

If you no longer trust Sharekhan, it is better to move your account to some other broker.

If your broker can trade in your account without your consent, then you need to be alert.

Stock exchanges and NSDL send alerts to clients about transactions in their accounts. Always go through those alerts.
 
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