Fri Jan 03 20:30:21 UTC 2025: ## SEBI Re-Bans Notorious Stockbroker Ketan Parekh for Front-Running

**Mumbai, January 2, 2025** – The Securities and Exchange Board of India (SEBI) has once again banned former stockbroker Ketan Parekh from trading securities. This latest ban stems from allegations of front-running trades of a major US-based fund, according to a SEBI order released Thursday.

Parekh, infamous for his role in one of India’s biggest financial scandals at the turn of the millennium, is accused of obtaining non-public information about the US fund’s trades from Singapore-based Rohit Salgaocar. Salgaocar allegedly had an agreement to refer trades to Motilal Oswal Financial Services Ltd. and Nuvama Wealth Management Ltd. Parekh then allegedly used this information to execute trades ahead of the US fund, benefiting from advance knowledge of market movements.

SEBI’s investigation, spanning two years and concluding in June 2023, found evidence supporting these allegations. SEBI member Kamlesh Varshney stated in the order that Parekh passed the confidential information to his associates to facilitate the front-running. The regulator has impounded approximately ₹65.80 crore in alleged unlawful gains made by those involved.

This is not Parekh’s first brush with SEBI. He was previously banned for 14 years in 2003 for insider trading, price rigging, and illegally diverting bank funds into the stock market – actions that contributed to a significant stock market crash in early 2001.

Parekh and 21 others named in the order have been given 21 days to respond to the findings. The renewed ban underscores SEBI’s ongoing efforts to maintain market integrity and protect investors.

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