How Sebi Exposed MSVPL Front-Running

The case hinges on a key detail: four brokerages tied to the Big Client operated from the same Malad complex

- Neha Joshi

In a 127-page interim order that could set a new benchmark for market surveillance, the Securities and Exchange Board of India (Sebi) has charged Mumbai-based broker Madhav Stock Vision Pvt. Ltd (MSVPL) and five individuals for front-running the trades of a large institutional investor, referred to as "Big Client."

Sebi restrained Madhav Stock from dealing in securities in its account and prohibited the individuals from dealing with securities, directly or indirectly, until further orders.

What sets this order apart is the holistic integration of technological evidence to reconstruct the modus operandi of the accused in real time, experts say.

The order of April 23 marks a pivotal shift in Sebi's enforcement strategy—one that blends IP log analysis, telecom data, and chat forensics to trace real-time information leaks and manipulation.

"Sebi has effectively uncovered real-time information leakage and front running," Abhiraj Arora, partner at Saraf and Partners, said. "This approach enhances the regulator's ability to detect and prove complex financial crimes with concrete digital evidence, marking a significant advancement in enforcement practices."