Sebi court bars Ketan Parekh from foreign travel, says he may misuse the permission

Ketan Parekh who was once an associate of Harshad Mehta, Ketan Parekh, was arrested, convicted of cheating and barred by SEBI from trading in the securities market for 14 years for his role in the 2000 and 2001 Madhavpura Mercantile Co-operative Bank. Currently around 11 cases are ongoing against Parekh before the Special Sebi Court.

A Special Court at capital market regulator Sebi has rejected stock-market operator Ketan Parekh’s application seeking blanket permission to travel abroad, ruling that such a liberty could jeopardise ongoing investigations as well as India’s financial interests.

The court order, seen by Moneycontrol, said Parekh had filed a vague, four-month travel request without disclosing the full itinerary, adding that permissions granted in the past had been allegedly misused to continue illegal securities transactions.

One of the Whole-Time Member (WTM) at Sebi has already passed an interim order impounding unlawful gains of Rs 65.77 crore jointly from Parekh and others. The WTM order, dated January 2, 2025, related to trades executed between January 1, 2021 and June 20, 2023, after investigations revealed that Parekh allegedly obtained non-public information (NPI) from Rohit Salgavkar and passed trading instructions based on the insider information.

While recognising that the Supreme Court has upheld the right to travel abroad as a basic right, the Sebi court said national interest outweighed Parekh’s personal reasons, and concluded that granting him open-ended travel can risk further violations of securities law.

Parekh had cited family reasons in his plea, including attending a relative’s wedding, his elder daughter’s health issues, and visiting daughters residing overseas. He had also sought to visit multiple destinations such as the UK, UAE, Singapore, Thailand, Sri Lanka, South Africa, the European Union, and Georgia.

Also Read: Sebi Special Court rejects Ketan Parekh’s plea to travel abroad

Parekh had requested permission to travel abroad for family vacation and to attend two wedding ceremonies - one on Novemebr 22 and 23, 2025 and second one on January 24 and 26, 2026.

SEBI said Parekh had "used the travel permission as a cloak to disguised ongoing illegal activity. There is every possibility of applicant/accused misusing the travel permission. Hence, the permission may not be granted." According to Sebi, Parekh had also not challenged the January 2 order, and is "seeking blanket permission for traveling abroad to continue such illegal activity again seamlessly and there is possibility of him absconding and settled in foreign country."

Moneycontrol has previously reported that Sebi had flagged off Parekh’s use of multiple SIM cards under aliases like “Jack,” “Boss,” “Bhai” and “Wellwisher” to conceal his identity while issuing instructions. Regulators argued that if he were to be allowed to leave India, it will be difficult to monitor his communications.

Sebi Special Court Judge RM Jadhav, in his order concluded, “I found that it would not be expedient in the national interest and economy of the country to permit the applicant/accused to travel abroad for a longer period of four months that too without specific details except the details in respect of the wedding ceremony of close relatives and acquaintance. The possibility of applicant/accused indulging such unlawful activity in contravention to the securities law can not be ruled out if such, blanket permission for a period of four month is granted to the applicant/accused.”

Sebi argued against Parekh’s request and said there is “every possibility of applicant/accused misusing the travel permission. Hence, the permission may not be granted.”

Last year, the Sebi court had permitted Parekh to travel abroad from December 20, 2024, to March 20, 2025, subject to conditions, including furnishing a detailed itinerary and depositing additional security. Despite that, the regulator has alleged misuse of privilege. It is noteworthy that as many as 11 criminal matters are still pending against him before the Sebi Special Court.

Ketan Parekh, who was once an associate of Harshad Mehta, was arrested and later convicted of cheating, and barred by Sebi from the securities market for 14 years for his role in the 2000-01 Madhavpura Mercantile Co-operative Bank scam.

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