The Securities and Exchange Board of India has sought information from Capital Group about trades by its entities in the local stock market that were flagged in a front-running case in early 2025, according to people familiar with the matter.

The SEBI sent a so-called show-cause notice to six entities registered as foreign portfolio investors in India, the people said, asking not to be named as the information is private. It’s the first time the US-based investment firm Capital Group has been named in relation to the case.

The regulator has sought information from Capital Group on their alleged inability to maintain confidentiality of their trades in India, the people said. This formed the basis of the SEBI’s 188-page interim order that named former stock broker Ketan Parekh and Singapore-based trader Rohit Salgaocar as chief architects of a plan to front-run trades of a major client. Capital Group declined to comment citing ongoing investigations, while the SEBI didn’t immediately respond to Bloomberg’s request for comment. 

The Economic Times earlier reported that the regulator is investigating Capital Group’s trades in India between January 2021 and June 2023 during which it detected a leak of information to Parekh and Salgaocar. Parekh and Salgaocar could not be contacted for comment.

SEBI’s investigation showed that Parekh allegedly obtained non-public information of a major US fund’s trades from Salgaocar, who had an agreement to refer trades of that fund to Motilal Oswal Financial Services Ltd. and Nuvama Wealth Management Ltd. Parekh then passed on the information to his associates to front run the trades, SEBI member Kamlesh Varshney had said in the 2025 order.

Salgaocar has appealed the interim order in a Mumbai court in November, according to a report by Moneycontrol. The outcome of the case is pending. 

Capital Group, which manages over $3 trillion in assets globally, has a long history of investments in India, with ownership in several firms including Bharti Airtel Ltd. and Maruti Suzuki India Ltd. 

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Published on May 21, 2026