LIC fires employee who traded in dead father's demat account in front running case

State-run Life Insurance Corporation of India (LIC) on Wednesday said it has fired an employee, who has been banned by markets regulator Sebi in a front-running case after the incident was reported last year...

"He (the accused employee Yogesh Garg) has been removed from the services of the Corporation following the due administrative procedure by the disciplinary authority consequent to his involvement in the front running," LIC said in a statement...

Garg, who worked in the equity dealing section, has been accused of front-running trades of LIC, which is the largest domestic institutional investor in the Indian stock market..

"Orders for the first leg of their intraday trades were placed and executed just before the impending order(s) of LIC and the order(s) for squaring off their trades i.e., second leg sell/ buy order(s) were placed at a limit price which is less/ more than the buy/ sell order limit price of LIC, ensuring that such sell/ buy order(s) would get matched with the buy/ sell order(s) of LIC," Sebi said.. Using this modus operandi, the accused are believed to have made a profit of Rs 2.44 crore...

In its order, Sebi found that Yogesh Garg, being a dealer in LIC, was in possession of non-public information regarding impending orders of LIC and acted as an information carrier...

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