Sebi Intensifies Scrutiny of Brokers' Dealing Rooms Over Front Running Concerns

India's market regulator, the Securities and Exchange Board of India (Sebi), is intensifying scrutiny of stockbrokers' dealing rooms to address concerns over front running, where employees exploit advance knowledge of large trades for personal gain. Inspections at various brokerage firms focus on trades involving institutional and high-net-worth clients. Authorities are examining trade initiation, execution, access controls, and communication channels, requesting a complete audit trail for each transaction to ensure compliance and transparency.