The Securities and Exchange Board of India (SEBI) has issued an interim order banning Sachin Bakul Dagli, an equity dealer with PNB MetLife, and eight other entities from the securities market due to their involvement in a front-running scheme. The scheme, which was operational for over three years, generated illegal gains of ₹21.16 crore by misusing non-public trade information.
The scheme involved the sharing of confidential trade details between Sachin Dagli, his brother Tejas Dagli, and Sandeep Shambharkar, and the execution of fraudulent trades through the accounts of three companies – Dhanmata Realty Pvt Ltd, Worthy Distributors Pvt Ltd, and Pragnesh Sanghvi. The directors of these companies, including Arpan Kirtikumar Shah, Kabita Saha, and Jignesh Nikulbhai Dabhi, were also complicit in enabling the scheme.
SEBI’s investigation found that the entities involved executed 6,766 trades using a buy-buy-sell or sell-sell-buy pattern to exploit market movements caused by large client trades. The agency has imposed a ban on the entities and impounded the illegal profits of ₹21.16 crore.
PNB MetLife, in its statement, emphasized its cooperation with SEBI during the investigation and stated that disciplinary action had been taken against the individuals involved. The company reiterated its commitment to corporate governance, transparency, and integrity. The investigation covered the period from January 2021 to July 2024 and was conducted under SEBI’s PFUTP regulations and the SEBI Act.