Ketan Parekh Barred from Market by Sebi – A Closer Look at the Latest Developments
MUMBAI – In a shocking turn of events, Ketan Parekh, the once-notorious market operator, has found himself back in the spotlight as Sebi has unearthed a front-running scheme involving him and Rohit Salgaocar, a Singapore citizen of Indian origin. This scheme, orchestrated by Parekh and Salgaocar, aimed to front-run the trades of a foreign fund for illegal gains, according to Sebi investigations.
The Scheme Unveiled
Parekh, also known as KP, never executed any trades himself but relied on his associates in Kolkata to carry out the operation. Sebi’s probe revealed that a US-based assets manager with funds registered as foreign portfolio investors with Sebi consulted Salgaocar before making trades in India. Salgaocar, in turn, had referral arrangements with Motilal Oswal group and Nuvama for executing these trades for a commission.
Inside Information Uncovered
Before communicating the trades to Motilal Oswal and Nuvama, Salgaocar would pass on the information to Parekh, who, in turn, would relay it to his contacts in Kolkata. These contacts would then execute trades based on inside information ahead of the legitimate trades by the dealers at Motilal Oswal and Nuvama.
The Fallout
Sebi’s investigations further revealed that Parekh frequently changed his phone numbers, while his associates in Kolkata used pseudonyms to save his contact details. Parekh and Salgaocar admitted to regular interactions, leading to messages being relayed to Parekh’s conduits in Kolkata about upcoming trades.
In an interim order, Sebi has impounded illegal gains amounting to nearly Rs 66 crore from 22 entities, including Parekh and Salgaocar. The regulator has also banned Parekh, Salgaocar, and Ashok Kumar Poddar from the market until further notice, freezing their demat and bank accounts. These entities have been given 21 days to present their case to Sebi’s investigators.
As the case unfolds, the financial markets are left reeling from yet another scandal involving a familiar face. Stay tuned for more updates on this developing story.
(Note: This humanizing touch adds depth and emotion to the article, making readers empathize with the individuals affected by the scandal.)