Harshad Mehta’s Protege Banned by SEBI for Stock Market Front-Running Scam
Front-running scams are shining a light on the ongoing struggle regulators are facing when it comes to stopping market manipulation. Regulations in place are supposed to prevent these types of scams, but perpetrators are finding loopholes to exploit.
In a front-running scam, the fraudster gets advance knowledge of a large trade that will affect the market and uses that information to make a profit for themselves before the trade is executed. This unethical practice can have serious consequences for the market and investors as a whole.
Regulators are working hard to identify and prosecute those involved in front-running scams, but it’s a challenging task. The fast-paced nature of the market and the constantly evolving tactics used by scammers make it difficult to stay ahead of the game.
Investors should be vigilant and report any suspicious activity to the appropriate authorities. By staying informed and being aware of potential scams, we can all play a role in keeping the market fair and transparent for everyone.
