Front Running is an illegal trading practice where a broker or insider executes trades in advance based on non-public information about a large upcoming transaction.
In front running, a person (usually a broker, dealer, or insider) knows that a large order is about to be placed, which will likely move the market price.
They use this confidential information to trade for personal gain before executing the client’s order. This results in unfair advantage and market manipulation.
Such practices are strictly prohibited and regulated by the Securities and Exchange Board of India.
"A broker buys shares knowing a client will place a large buy order, then sells after the price rises—this is front running."