The Global Game: How Ketan Parekh Allegedly Used Foreign Shores to Mask a New Market Scam

In a dramatic turn of events, market regulator SEBI has once again cast a harsh spotlight on Ketan Parekh, the infamous stockbroker who became a household name during the 2001 market scam. This time, the allegations paint a picture of sophisticated market manipulation, with Parekh allegedly using the guise of foreign travel to orchestrate a fresh wave of illegal trading activities, meticulously hidden behind a veil of international transactions and offshore entities.

SEBI’s interim order, a detailed document that reads like a financial thriller, exposes a complex web of dealings spanning from November 2021 to February 2022.

The regulator asserts that Parekh, already barred from the securities market, devised a cunning new modus operandi. At the heart of this alleged scheme was a US-based entity named 'KP & Co.', reportedly owned by his nephew, Kirit Parekh. This entity, SEBI claims, served as a crucial front for routing transactions through overseas bank accounts, particularly in the UAE, to ultimately execute trades on Indian stock exchanges.

The investigation unearthed a pattern where funds moved from accounts in the UAE to various Indian entities, including 'Sanjay Joshi & Co.' and 'Aditya Birla Money'.

These funds were then purportedly used to trade in scrips that experienced significant price and volume movements. SEBI's forensic analysis pointed to a clear connection between the funds originating from Parekh's alleged network and the trading activities, suggesting an attempt to manipulate the market from beyond Indian shores.

This isn't Parekh's first dance with controversy.

His name is synonymous with the "Ketan Parekh scam" of 2001, a financial debacle that shook the Indian markets to its core. Despite being explicitly prohibited from participating in the securities market, SEBI alleges that Parekh’s thirst for market action remained unquenched. The regulator highlights his persistent attempts to circumvent the rules, adapting his tactics to exploit new loopholes, with foreign travel and offshore structures now forming the core of his alleged illicit operations.

In response to these grave findings, SEBI has taken decisive action.

The interim order not only impounds a substantial sum of Rs 12.35 crore from Parekh and the entities allegedly involved but also explicitly restrains them from accessing the securities market until further orders. This stern measure underscores SEBI’s unwavering commitment to maintaining the integrity of India's financial markets and sending a strong message that no individual, however notorious, is above the law.

The case serves as a stark reminder of the continuous cat-and-mouse game between market regulators and those who seek to exploit the system for personal gain.

As the investigation continues, the financial world watches closely to see the full extent of this alleged international financial conspiracy unravel.