SEBI's AI detects front-running in PMS, Manoj Kumar says
Business
SEBI just spotted front-running (basically using insider information for personal gain) in the portfolio management services (PMS) sector, thanks to its new AI tools.
This shady move was thought to be a mutual fund problem, but now it's showing up in PMS too.
The news came straight from SEBI's executive director, Manoj Kumar, at a Chennai industry event.
SEBI probes, Manoj Kumar promises leniency
SEBI's AI is picking up fresh patterns of front-running, and investigations are underway to see what this means for investors.
Kumar reassured everyone that honest mistakes won't be punished harshly. SEBI is open to discussions if violations aren't intentional.
Industry leaders like Biharilal Deora believe the review would support the industry's growth.