Fri Jan 03 10:03:29 UTC 2025: ## SEBI Debars Ketan Parekh, Others in Front-Running Scam; Impounds ₹65.77 Crore

**Mumbai, India** – The Securities and Exchange Board of India (SEBI) has debarred disgraced stock market operator Ketan Parekh and two other entities from participating in the Indian stock market for their involvement in a front-running scam. The regulator also impounded ₹65.77 crore (approximately $7.9 million USD) in illicit profits generated by Parekh, Singapore-based trader Rohit Salgaocar, and others.

The 188-page interim order details a sophisticated scheme where Salgaocar, leveraging his role in referring trades for a large US-based fund (managing approximately $2.5 trillion globally), used non-public information about upcoming trades to illegally profit. This information was then passed to Parekh, who executed trades through various accounts to maximize the illicit gains. The scheme involved 22 entities in total. While Motilal Oswal Financial Services and Nuvama Wealth Management facilitated trades for the US fund, SEBI found no evidence of wrongdoing on their part.

The scam, uncovered through search and seizure operations in Kolkata and Mumbai, involved using WhatsApp and calls to relay trading instructions. SEBI’s investigation revealed a clear pattern of matching trades between the US fund and the implicated parties, indicating the use of non-public information. Parekh, a repeat offender with a previous 14-year debarment for his role in the 2000 stock market scam, is a key figure in this latest incident. The order emphasizes the systematic nature of the operation, designed to circumvent regulatory oversight.

This news follows separate reports of Goa’s tourism minister criticizing social media influencers for allegedly spreading false narratives about a decline in tourism in Goa. The minister claims some influencers were paid to damage Goa’s image, a claim he intends to investigate further. While acknowledging some existing infrastructure issues, he emphasized that Goa’s tourism sector remains strong, citing high hotel occupancy rates and plans to counter negative online commentary.

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