SEBI Opposes Ketan Parekh’s Travel Plea, Alleges Plans To Evade Law And Settle Abroad
- SEBI has challenged Ketan Parekh’s request to visit multiple countries, alleging he previously misused foreign travel to conduct illegal trades.
- The regulator claims Parekh intends to evade surveillance, delay court proceedings, and settle abroad, raising concerns over risks to India’s markets and investors.
The Securities and Exchange Board of India (SEBI) has strongly objected to a plea filed by former stockbroker Ketan Parekh, a key figure in the 2000-2001 securities scam, seeking permission to travel overseas for four months. The regulator has alleged that Parekh has a track record of misusing such permissions to engage in illegal trading activities and may now be attempting to use the travel request as a pretext to permanently move abroad.
Parekh, who was banned from participating in the stock markets for 14 years due to his role in the securities scam that shook Dalal Street, is currently facing criminal proceedings before a special SEBI court in Mumbai. Despite these ongoing cases, Parekh filed an application seeking approval to travel to the UK, UAE, Singapore, Thailand, Sri Lanka, South Africa, Georgia, and multiple European Union countries. In his petition, he cited family reasons, including attending weddings and spending time with his two daughters who live in the UK. He also referred to his elder daughter’s health condition, stressing the need to be with her.
SEBI, however, opposed the plea, stating that Parekh has previously misused international travel allowances to carry out manipulative trades, often through covert WhatsApp groups. The regulator told the court that his intent is not limited to family engagements but involves a “larger, sinister motive” to evade legal scrutiny and possibly settle abroad. According to SEBI, such actions could enable Parekh to operate undetected and continue activities detrimental to India’s economy and investors’ trust.
The regulator also warned that granting him permission could disrupt ongoing legal proceedings and embolden him to escape accountability. By highlighting his past conduct, SEBI urged the court not to allow Parekh the liberty to leave India at a crucial stage in his pending cases.
The case against Ketan Parekh continues to serve as one of the most significant reminders of India’s stock market scams, where small investors bore the brunt of large-scale financial manipulations. SEBI’s opposition reflects its attempt to ensure accountability and prevent history from repeating itself.
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