Now Reading: SAT rejects Ketan Parekh plea to cross-examine Capital Group traders
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SAT rejects Ketan Parekh plea to cross-examine Capital Group traders
The Securities Appellate Tribunal has dismissed Ketan Parekh's appeal against Sebi's refusal to let him cross-examine two Capital Group traders in a front-running case. SAT ruled that once a matter is reserved,…
The Securities Appellate Tribunal has dismissed Ketan Parekh's appeal against Sebi's refusal to let him cross-examine two Capital Group traders in a front-running case. SAT ruled that once a matter is reserved, the only remaining right is to challenge the final order, and called Parekh's request 'mis-consumed'.
The case stems from a Sebi interim order in January 2025 that barred Parekh and Singapore-based trader Rohit Salgaocar for allegedly front-running trades of a US-based foreign portfolio investor managing about $2.5 trillion. Sebi ordered disgorgement of Rs 65.77 crore in illegal gains. A final Sebi order is pending.
Sebi had argued that the traders' statements were not used against Parekh and that they said they did not know him. The tribunal noted that any claim of extraneous material being used can be raised when Parekh challenges the final order.
Indian Opinion Analysis
Ketan Parekh was already banned from stock markets for 14 years after the 2000 market crash. This case tests whether Sebi can proceed without giving a noticee the chance to cross-examine witnesses whose statements are not cited against him. SAT has now effectively told Parekh to wait for Sebi's final order and challenge it then. The key question is when that final order will come and whether Sebi will impose a fresh ban. The tribunal's reasoning narrows the scope for interlocutory appeals in pending Sebi proceedings.
Source: rediff.com
This brief was synthesised by AI from the source linked above.
