The Securities and Exchange Board of India (SEBI) has formally opposed a request from Ketan Parekh, a notorious figure in the securities scam of 2000-2001, to travel overseas for four months. The regulator has expressed concerns that Parekh has previously misused travel permissions for illegal trading and may be attempting to use this request as a means to permanently relocate abroad. Parekh, who has been barred from stock market activities for 14 years due to his involvement in the securities scam that impacted Dalal Street, is currently under criminal proceedings at a special SEBI court in Mumbai.
In his application, Parekh seeks permission to travel to the UK, UAE, Singapore, Thailand, Sri Lanka, South Africa, Georgia, and several European Union countries, citing family matters such as weddings and the need to be with his two daughters residing in the UK, particularly for his elder daughter’s health issues. SEBI opposed his request, alleging that Parekh has a history of exploiting international travel to conduct manipulative trading through discreet WhatsApp groups. The regulator contended that Parekh’s intentions extend beyond family obligations and suggest a broader motive to evade legal oversight and potentially establish a permanent residence abroad. SEBI warned that allowing him to travel could hinder ongoing legal proceedings and provide him the opportunity to evade accountability.
By referencing Parekh’s past behavior, SEBI urged the court to deny his request, emphasizing the importance of maintaining legal processes at this critical juncture. The case against Ketan Parekh remains a significant illustration of India’s stock market frauds, which have significantly impacted small investors. SEBI’s stance underscores its commitment to ensuring accountability and preventing a recurrence of such financial misconduct.
