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

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

The Special Sebi Court on Tuesday rejected an application by disgraced stock market operator Ketan Parekh seeking permission to travel abroad for family vacations and weddings. The court had heard arguments from both sides last Friday and reserved its order, which was pronounced on Tuesday, though the detailed ruling has not yet been uploaded.

Legal sources said the rejection stemmed from the Securities and Exchange Board of India’s (Sebi) strong opposition, backed by its January 2, 2025 interim ex-parte order. The regulator alleged that Parekh’s foreign travel plans could serve as a route to evade surveillance and settle abroad, enabling him to continue fraudulent activities.

Sebi argued that if allowed, Parekh might misuse the permission by engaging in trades through covert means. The market watchdog claimed his travel request had a “sinister motive,” pointing to past conduct where he used multiple SIM cards not registered in his name. According to the regulator, Parekh was stored under aliases such as “Jack,” “Boss,” “Bhai” and “Wellwisher” in co-conspirators’ phones, indicating deliberate attempts to mask his identity. Such concealment, Sebi said, would make monitoring his communications impossible if he were permitted to leave the country.

In his application, Parekh had sought permission to travel to destinations including the UK, UAE, Singapore, Thailand, Sri Lanka, South Africa, the European Union and Georgia. He cited personal reasons, including the health condition of his elder daughter and a desire to spend time with both daughters currently residing in the UK.

Parekh argued that his proposed travel was for family purposes only and not connected with any business dealings. However, Sebi opposed the request, stressing that given his history of serious market violations, the risk of misuse far outweighed the personal grounds cited.

On January 2, Sebi had passed an interim order barring Parekh and two other entities, including Singapore-based trader Rohit Salgaocar, from participating in the securities market for their involvement in a front-running scam. The regulator directed the impounding of Rs 65.77 crore alleged to be the wrongful gains made by the group.

The order detailed how Parekh and Salgaocar orchestrated trades using non-public, time-sensitive information from a US-based fund house managing around $2.5 trillion globally. Parekh allegedly relayed this information to frontrunners in India, enabling illicit profits at the expense of genuine investors.

Parekh, once a powerful figure in Dalal Street, had earlier been imprisoned and debarred from trading for 14 years for his role in the 2000–01 securities scam involving Madhavpura Mercantile Co-operative Bank. That scandal had shaken India’s capital markets and led to widespread regulatory reforms.

Interestingly, the Sebi Special Court had permitted Parekh last year to travel abroad between December 20, 2024, and March 20, 2025, to destinations such as the UK, UAE, Singapore, Thailand, Sri Lanka, Japan and the EU. At that time, he was directed to deposit an additional Rs 1 lakh as security, share his complete itinerary, and provide the contact details of two individuals. He was also explicitly warned “not to misuse the liberty” granted to him.

Despite those conditions, the regulator’s January findings, coupled with its apprehension of potential evasion this time, appear to have swayed the court against granting him similar relief.

Court records show that a total of 11 matters are currently pending against Parekh before the Special Sebi Court. With the latest rejection, the controversial figure remains barred from overseas travel as he continues to face both regulatory and criminal proceedings.