SEBI has penalised Pace Stock Broking in connection with its role in an Axis Mutual Fund front-running matter. According to the reports, the regulator does not find Pace guilty of front-running, but it issues the fine based on compliance and record-keeping failures. SEBI’s order highlights that Pace failed to maintain and furnish trade-wise IP address records in the format and manner prescribed by the regulator. The deficiency is described as hindering SEBI’s ability to investigate effectively.
Business Line reports that SEBI imposes a penalty of ₹4 lakh, specifically for the lapses related to the trade-wise IP address records. NDTV similarly states that the order focuses on record-keeping and investigation-related issues, rather than concluding that the brokerage engaged in front-running.
Together, the sources indicate that the penalty is compliance-based and tied to documentation requirements, with the underlying allegation of front-running not attributed to Pace in SEBI’s finding. The matter centres on the broker’s ability to produce required records for scrutiny in the ongoing enforcement process.
