Fri Jan 03 07:32:52 UTC 2025: ## Ketan Parekh Allegedly Involved in New Front-Running Scam: SEBI
**Mumbai, India** – Market regulator SEBI has uncovered a significant front-running scam involving approximately ₹65.77 crore in illicit gains. The investigation points to the alleged involvement of Ketan Parekh, a stockbroker infamous for his role in a major 2000 market scandal. Parekh, previously jailed and banned from the securities market for 14 years, is suspected of once again manipulating the market.
SEBI’s interim order, released on January 2nd, details investigations spanning over 20 locations. The scam allegedly involved Singapore-based trader Rohit Salgaonkar, who had close ties to a fund house. Salgaonkar allegedly shared confidential information with Parekh, enabling him to profit systematically through front-running.
The regulator also exposed a separate front-running scheme by Sachin Bakul Dagli, an equity dealer at PNB MetLife India Insurance Company, and eight other entities, resulting in illegal profits of ₹21.16 crore. PNB MetLife has stated it cooperated fully with the investigation and has taken disciplinary action against the involved individual, emphasizing its commitment to high operational standards and transparency.
Front-running involves using advance knowledge of impending trades to profit before the information becomes public. SEBI’s investigation highlights the ongoing challenge of combating insider trading and market manipulation. Further investigations are underway.
First Piper 