A former Chief Investment Officer of a financial institution and his sister have settled a front running case against them by paying a total of Rs 91 lakh as the settlement amount while opting for a voluntary debarment from the securities market for six months.The accused had filed a settlement application before the Securities and Exchange Board of India (Sebi) proposing to settle the case by neither admitting nor denying the findings of fact and conclusions of law.The case is related to Deven Sangoi and his sister Meghana Gosar against whom, Sebi conducted an investigation to probe potential front running of the trades of an entity, executed during August 1, 2021 and April 30, 2022.Sebi allowed the settlement after a High Powered Advisory Committee (HPAC) in its meeting held on September 30, 2024, considered the revised settlement terms proposed by the applicants. The above terms of settlement were recommended by HPAC, a four-page order pronounced by the market regulator said.Sebi will now not initiate any enforcement action against the duo.About the case:-- The Sebi investigation found a total of 266 instances of trades executed by Gosar in the equity segment and 76 instances of the trades in the equity derivatives segment. The Gross Trade Value (GTV) for the 266 instances in the equity segment was Rs 63.13 crores out of which, the GTV for the 52 front running instances of trades in the equity segment was Rs 30.01 crore or 47.53% of the total GTV of the equity segment.-- Similarly, the GTV for 76 instances in the equity derivative segment was Rs 23.74 crore out of which, the GTV for the 18 front-running instances oftrades in the equity derivatives segment was Rs 12.34 crore or 51.97% of the total GTV during the investigation proceedings.-- The gross traded value in front running instances in both the segments amounted to Rs 42.36 crores.-- Gosar squared off profits worth Rs 20.74 lakhs for the 52 front running instances of trades in the equity segment and Rs 7.04 lakhs for the 18 front running instances of trades in the equity derivatives segment and thereby made total unlawful gains of Rs 27.77 lakh.By virtue of Sangoi's position as the Chief Investment Officer, Gosar was alleged to be privy to information about the scrips and trades to be executed by the entity. Moreover, Gosar was also allegedly front running the trades of the entity where she provided her trading account credentials for the execution of trades.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)