In the interim order, the regulator also directed the seizure of Rs 65.77 billion from Parekh, Salgaocar and 20 other defendants, alleging that they had earned “illicit enrichment”.
Parekh is infamous for his stock market fraud that caused the market crash in 2001.
“Notification Nos. 1 and 2, namely Rohit Salgaokal and Ketan Parekh, have devised the entire scheme to unjustly enrich themselves from NPIs associated with big clients by organizing front-running activities. Notification No. 10 (Ashok Kumar Poddar) has admitted to be the instigator of the case.Furthermore, Notification No. 2 and No. 10 namely Ketan. Parekh and Ashok Kumar Poddar were prohibited from dealing in securities.In view of the same, notifications Nos. 1, 2 and 10 directly or indirectly purchase, sell, trade in securities or SEBI. , with immediate effect,” the 188-page order issued by Sebi’s full-time member Kamlesh Varshney said.
The order was issued in the wake of an investigation conducted by Sebi during the period from January 1, 2021 to June 20, 2023, in which the defendants received information from NPI (non-public information) relating to overseas entities. It turned out that he had been unfairly enriched. Overseas portfolio investment business
According to the order, “Traders of Big Client (a fund house with close ties to Salgaokar) had discussions with Rohit Salgaokar before executing trades and such information was passed on to Ketan Parekh. It was hidden by Rohit Salgaokar by sharing it with him. Ianto’s traders had discussed the trade with Rohit Salgaokar in order to secure a counterparty for the trade, and Rohit Salgaokar used the information and when the information reached Ketan Parekh, he systematically He acted and cumulatively generated illegal profits.As explained below, he was disbarred. It was also informed by the stock market 14 years ago, in terms of information flow and how Parekh used the nascent network of Kolkata-based organizations to front-running transactions. The operations and investigation were novel. Sebi’s investigation found that Mr. Parekh was executing trades based on non-public information (NPI) through the accounts of six front runners (FRs) and three facilitators. did. The Sebi investigation found that 11 directors were involved in these six leading companies.
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