Front-running refers to an illegal practice, where an entity trades based on advanced information from a stock broker or analyst before the information has been made available to clients.

It was alleged that as a stock broker, Axis Securities failed to exercise appropriate due diligence in the matter in its dealer and branch manager compliance policy. The order came after Axis Securities filed an application with Securities and Exchange Board of India (Sebi) proposing to settle the violation of broker regulations "without admitting or denying the findings of fact and conclusions of law".

SEBI's investigation revealed that Axis Securities failed to enforce compliance policies, allowing a dealer to exploit non-public information in trades involving SVI Consolidated Pvt Ltd.