India's market regulator has sent a show cause notice to six Capital Group foreign portfolio investors over alleged breaches of trade confidentiality. The action follows claims that sensitive order details were shared improperly, enabling front-running activities.
Sebi has issued the notice for alleged lapses in protecting trade information. Reports indicate two traders passed sensitive order details to Singapore-based Rohit Salgaocar. He allegedly forwarded the information to market operator Ketan Parekh, allowing a front-running network to make illicit gains.