SEBI Cracks Down on Ketan Parekh and Associates for Front-running Scheme

SEBI has barred Ketan Parekh and two others from participating in India's securities markets due to their involvement in a front-running scheme, which resulted in illegal gains of Rs 65.77 crore. Alongside restraining measures against these individuals, SEBI has demanded disgorgement of profits from 22 entities involved.

The Securities and Exchange Board of India (SEBI) has taken immediate action against Ketan Parekh and two others, barring them from the securities markets. This decision comes in response to their alleged involvement in a front-running scheme that generated illegal profits worth Rs 65.77 crore.

SEBI has ordered 22 entities, including Parekh, to jointly and severally return these unlawful gains. The regulatory body also issued show cause notices to these entities, questioning why further penalties, including disgorgement and debarment, should not be imposed.

A detailed investigation revealed that Ketan Parekh, with the help of associates Rohit Salgaocar and Ashok Kumar Poddar, orchestrated trades using non-public information. The crackdown comes amid findings that Parekh has a history of market manipulation, leading SEBI to reinforce its measures against him and his associates.

(With inputs from agencies.)