The Securities and Exchange Board of India (Sebi) has directed HDFC AMC to set up an internal inquiry to investigate several instances of front running by some clients of the portfolio management service ahead of the orders of HDFC mutual fund. The regulator has further barred HDFC AMC from utilising the service of Nilesh Kapadia, vice president, equities, HDFC AMC, who is suspected to be invlved in the front running. The regulator in its investigation found 38 instances of front running of orders over 24 scrips days spread across BSE and NSE during April to July 2007. Sebi in its order named three investors Rajiv Ramniklal Sanghvir, Chandrakant P. Mehta, Dipti Paras Mehta who successfully placed buy/sell orders ahead of substantial buy/sell orders of HDFC AMC.