Front Running

Facts for Prelims (FFP)   Source: TH  Context: SEBI has mandated Asset Management Companies (AMCs) to establish an institutional mechanism to deter potential market abuse, including front-running, following recent instances observed by the market regulator.   What is Front Running?   What are AMCs? Asset Management Companies (AMCs) are financial institutions responsible for managing and …

Front-Running

Facts for Prelims (FFP) Source: NIE  Context: The Securities and Exchange Board of India (SEBI) has banned five entities, including an employee of the Life Insurance Corporation of India (LIC), from the securities market for ‘front-running’   Explanation: Front-running is an illegal practice in the stock market where an individual or entity trades based on …