Sebi Cracks Down on Front-Running Scheme: Ketan Parekh Barred

The Securities and Exchange Board of India (Sebi) has barred Ketan Parekh and two others from the securities markets for engaging in a front-running scheme. The action involves impounding illegal gains of Rs 65.77 crore. The accused have been instructed to respond within 21 days.

The Securities and Exchange Board of India (Sebi) has taken decisive action against a trio, including Ketan Parekh, by barring them from participating in the securities markets. This move follows their alleged involvement in a front-running scheme that reportedly generated illicit gains amounting to Rs 65.77 crore.

Sebi has also directed 22 parties, including Parekh, to collectively return unlawful earnings of Rs 65.77 crore. This measure is a part of a broader directive to address alleged violations through disgorgement, debarment, and potential penalties.

The accused, including Rohit Salgaocar and Ashok Kumar Poddar, received instructions via WhatsApp from contacts linked to Parekh, orchestrating trades based on sensitive non-public information. Sebi's interim order demands the entities submit their responses within three weeks of the ruling.

(With inputs from agencies.)