SEBI found out Ketan Parekh's secret network!
Market operator Ketan Parekh was controlling the stock market from behind the scenes through insider information. As soon as SEBI got wind of this, it put the entire system on alert mode. Ketan Parekh's secret network was found and as soon as evidence was found, Ketan Parekh's participation in any kind of stock market was banned. Along with this, his illegal earnings of Rs 65 crore 77 lakh were seized. Suspicious bank accounts related to him have also been frozen. With this order of SEBI on january 2, a unique front running scam of its kind has come to light in the stock market. It is known that after a stock scam in the year 2000, Ketan Parekh was in jail for a long time. At that time also, he was banned from trading in the stock market for 14 years. SEBI has also banned Singapore-based stock trader Rohit Salgaonkar from doing business in its january 2 order.
This is how Ketan Parikh was doing the front running scam
The 188-page order issued by SEBI states that traders from a large US-based fund house used to take advice from Rohit Salgaonkar for trading in the indian stock market. Those people also shared a lot of confidential information with Rohit Salgaonkar. Rohit Salgaonkar used to send this information to Ketan Parikh. Ketan Parikh used to make money by using this information for a counter party. For this, he had created a front runner network, which included stock brokers or their employees. Who usually planned to buy or bought a stock.
This is how they executed the plan
The information sent by Rohit Salgaonkar was confidential, which was not available on any public platform. In this way, these people were making a lot of money by knowing the confidential plans of a company or stock trader in advance.