Front running trades were executed in nine stocks between August and November 2022, according to the SEBI order. The stocks include, Central Bank of India, TNPL, Apollo Tyres, Ester Industries, Inox Wind, HFCL, Tips Industries and two instances in Genus Power.
These nine front running instances constituted 30% of the total trading volume and the pattern in all the instances was Behaviour Based Manipulation (BBS) pattern.
Adhunik traded in 43 stocks during the August-November, 2022 period, and in 32 of those, positions were fully squared off in 32 of them. In the nine front running instances, 95% to 100% of the trades in seven of them match with Santosh Industries Ltd., according to the SEBI order.On October 14, 2022, Adhunik executed buy trades in 75,184 shares of HFCL at 12:27 PM. The same day, the buy trades for 10 lakh shares by Santosh Industries was placed between 12:28 PM and 15:25 PM. Adhunik’s buy end price was ₹77.1 and when Santosh Industries began to place buy trades, the 75,184 shares bought earlier by Adhunik were sold a ₹78.01. Out of the 75,184 shares sold, 72,661 matched with Santosh Industries. The move resulted in a profit of ₹69,450.35.
A similar buy trade was executed in Genus Power on November 28, 2022, where Adhunik placed buy trades for 3.34 lakh shares between 9:19 AM and 12:04 PM. The average buying price of ₹97.32.
On the same day, buy trades for 12,80,589 shares of Genus Power was placed by Santosh Industries between 10:54 AM and 15:29 PM at an average price of ₹100.79. As soon as Santosh began buying, the sell trades for those 3.34 lakh shares by Adhunik were sold between 13:16 PM and 13:18 PM at an average price of ₹102.31. Out of those 3.34 lakhs shares, 3.31 lakh matched with Santosh Industries and resulted in a positive square off worth ₹16.71 lakh
The noticees have been ordered to pay the amount within 45 days of the issue of this order and failure to do so would involve consequential actions, including but not limited to recovery proceedings.
