Regulating from the front

Focus on deterrence against front-running

The market regulator, the Securities and Exchange Board of India (Sebi), has investigated various instances of front-running over the past several years, but the issue came to a head again last week when Axis Mutual Fund suspended two individuals, reportedly for this offence. One of them was the manager of five funds, and the other was an analyst-cum-assistant fund manager, handling three funds. Sebi has to undertake a speedy investigation of this case, and hand out fast, exemplary punishment in case the allegations are correct to help stamp out this malpractice. As the term indicates, front-running occurs when somebody utilises