The market regulator established the identity of a 'shape-shifting' Ketan Parekh, as one of the key players in a front-running scam, with thrilling originality.
Parekh kept changing his numbers to evade regulator but SEBI upped the game.
The interim order passed on January 2 by the Securities and Exchange Board of India's (SEBI's) Whole-time Member Kamlesh Varshney reads like a spy novel, especially when the regulator details how Parekh's connection to the various numbers was established. Parekh was using these multiple numbers to pass on trading instructions to front-runner (FR) entities.
Also read: Ketan Parekh strikes again! SEBI unearths unusual front-running scam, impounds Rs 65.77 crore
These numbers were gathered from various mobile devices during search-and-seizure operations and from statements of various entities. But they were saved in these devices under different names, such as Jack, John, Bhai and Wellwisher.
To establish that these were all linked to Parekh, SEBI did some out-of-the-box thinking.
IMEI connection
Firstly, link was established by tracking the phone numbers associated with various International Mobile Equipment Identity (IMEI) numbers.
Parekh was used to changing phone numbers to evade detection but not used to changing phones in the same frequency. That proved a chink in the armour.
SEBI found that various phones linked to Parekh were linked to the phone numbers that were giving the front-runners their instructions.
For example, a number ending in 8243 was submitted by Parekh as one belonging to his wife but one that he uses. The IMEI number linked to this phone number was also linked to another number ending in 9917.
Another number ending in 2996 was confirmed by Parekh as his own number in a statement given to SEBI; his associate Rohit Salgaocar also confirmed that this number belonged to Parekh. The IMEI number linked to this phone number was also linked to another phone number 1068.
Location analysis
SEBI then looked at the call-data records to figure out the location of the various numbers during night time--between 9 pm to 6 am.
This examination revealed that all the mobile numbers were located at the home address of Ketan Parekh on most occasions i.e. Zaver Mahal, 19/b, Marine Drive, Marine Lines, Mumbai, Maharashtra – 400020
Travel history
The regulator also checked with third parties such as hotels and airlines, to match the location of the numbers with Parekh's travel history.
The analysis of the mobile numbers “XXX0308243”, “XXX7571068”, “XXX6562996” and “XXX5555484” revealed that the said numbers were found to be located together at different hotels during different periods. SEBI's officials then checked with the hotel officials if Parekh had been staying there during these days and got a confirmation.
Birthday wishes
In one of the WhatsApp Chats, one of the front-runner entities Sanjay Taparia wished another--whose name was saved as Jack Latest--happy birthday.
The wish was sent out on February 15, 2023, and Jack Latest responded by thanking Taparia. The SEBI order said, "It is noted that the birth date of Ketan Parekh as mentioned on his PAN Card is also February 15, 1962".
The order added, "This further proves that “Jack Latest” is none other than Ketan Parekh and mobile number XXX5555484 is used by Ketan Parekh."
The order noted that, considering the analysis of these evidences, it can be inferred that Parekh used these contact numbers to, inter alia, communicate his instructions for execution of non-public information (NPI)-based trades to front-runners (FRs).
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