FRONT RUNNING

 FRONT RUNNING

Why In News:

  • Recently, a Mutual Fund was alleged to have indulged in Front- Running.
  • About Front Running
  • Front Running refers to usage of non-public information to directly or indirectly buy or sell securities, or enters into options or futures contracts, in advance of a substantial order. (Securities and Exchange Board of India (SEBI))
  • It is illegal in India.
  • It undermines confidence in the financial markets and creates an uneven playing field for other investors.
  • In 2022, Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 was amended to incorporate provisions to counter front running.


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