Mint Explainer: Why did Sebi crack down against Ketan Parekh and Rohit Salgaocar?
Subscribe to enjoy similar stories. India’s capital markets watchdog has unearthed a sophisticated trading web linking a convicted stock market manipulator, a Singapore-based trader, and a US fund’s confidential orders. This alleged front-running scheme, involving Ketan Parekh and Rohit Salgaocar, has brought the regulator's unrelenting pursuit of financial malpractice into the spotlight.
The Securities and Exchange Board of India (Sebi) found that Parekh and Salgaocar executed “illicit" trades using confidential, non-public information (NPI) about substantial stock orders from a US-based foreign portfolio investor (FPI), referred to as the “Big Client." Read this | Sebi cracks down on Ketan Parekh in new front-running case With unlawful profits totalling ₹65.77 crore, Sebi has acted swiftly to dismantle the network exploiting insider information. Mint breaks down the development. Rohit Salgaocar: A Singapore-based trader who allegedly served as the linchpin, passing non-public information about substantial impending trades by a prominent overseas fund—referred to as the Big Client—to Ketan Parekh, a known market manipulator.
Ketan Parekh: Infamous for orchestrating the 2001 stock market scam that caused a market crash, Parekh manipulated stock prices using borrowed funds. He was banned from participating in the securities market for 14 years and is now implicated in facilitating manipulative trades using insider information. Frontrunners: A group of six entities that executed trades based on the NPI provided by Parekh.
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