Ketan Parekh’s Scandal: SEBI Seizes Rs 66 Crore in Gains

Ketan Parekh and his associates have been accused of front-running trades of US-based Capital Group’s funds. On January 2, 2025, the Securities and Exchange Board of India (SEBI) issued an interim order to impound around Rs 66 crore in gains. Parekh allegedly used insider information from Rohit Salgaoncar, a Singapore-based trader, to execute trades before Capital Group’s transactions. They shared the profits through informal banking networks known as angadias.

Moreover, SEBI’s order identified GRD Securities Limited, Salasar Stock Broking Limited, and Anirudh Damani as involved entities. They matched trades for 20.61 lakh shares of PB Fintech (Policybazaar) on November 11, 2022. Exchange data showed that two entities linked to Tiger Global sold 1.23 crore shares of PB Fintech in 2022. However, sources told Moneycontrol that the main client was funds under Capital Group, not Tiger Global.

Additionally, the SEBI investigation found that Salgaoncar was well-connected. He helped the big client, American Funds, find buyers and sellers for their trades. He then passed on the trade information to Ketan Parekh. Parekh used his Kolkata-based network of associates to front-run the trades. They shared the profits through cash and banking transactions, utilizing angadias for the informal cash transfer.