LIC terminates services of staffer involved in front-running case

The Life Insurance Corporation said on Wednesday that it terminated services of Yogesh Garg against whom a confirmatory order was issued by capital markets regulator Securities and Exchange Board of India (Sebi) in a front-running trades case on Tuesday.

LIC in a statement said, “It is informed that Yogesh Garg was an employee in the cadre of Administrative Officer of the LIC. He 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 has a robust controlling monitoring mechanism along with best practices to prevent any kind of front running activity, the statement said.

The insurer said all measures to maintain transactional hygiene of dealing room are in place, including entry by biometric, CCTV coverage, restriction on electronic gadgets, etc.

“LIC has always been in the forefront of being a compliant organisation and shall continue to strengthen further on all matters of Corporate Governance,” it said.

In its order on Tuesday, Sebi clarified that the restraint imposed on April 27, 2023, the five individuals and entities, from buying, selling or dealing in securities either directly or indirectly, shall continue until further orders.

In April 2023, Sebi barred these five entities from the securities market and impounded illegal gains of Rs 2.44 crore made by them, in a case pertaining to front-running the trades of the state-owned insurer.

(With inputs from PTI)