SEBI Investigation Uncovers Ketan Parekh’s Secret Trading Network

The recent investigation by the Securities and Exchange Board of India (SEBI) into Ketan Parekh’s attempts to conceal his identity and avoid detection using multiple phone numbers reads like a thrilling spy novel. SEBI managed to trace these elusive numbers back to Parekh using innovative techniques after he utilized disguised identities and mobile numbers to manipulate the securities market through front-runner entities.
Parekh’s tactic was simple yet cunning: he frequently changed his phone numbers to fly under the regulatory radar. However, SEBI’s creative investigative methods paid off, leading to a breakthrough. By analyzing mobile phone records and employing advanced investigative tools, SEBI successfully unmasked Parekh’s true identity behind the multiple numbers.
One key strategy SEBI used was tracking International Mobile Equipment Identity (IMEI) numbers, a move that ultimately led to Parekh’s downfall. Despite changing phone numbers regularly, Parekh didn’t switch devices at the same pace. This discrepancy allowed SEBI to connect Parekh to the numbers used for executing trades based on non-public information.
For instance, a phone number ending in 8243, registered by Parekh under his wife’s name, was frequently used by Parekh himself. The IMEI linked to this phone also matched another number ending in 9917, solidifying the link to Parekh for SEBI.
SEBI further tracked the locations of Parekh’s mobile numbers during nighttime hours (9 pm to 6 am) to corroborate their findings. It was discovered that these numbers were often traced back to Parekh’s Mumbai residence at Zaver Mahal, Marine Lines, providing critical evidence of Parekh’s involvement in the suspicious trading activity.
To further strengthen the connection, SEBI cross-referenced mobile number locations with travel records, such as hotel stays and airline bookings. It was revealed that several of the numbers Parekh used were located together at various hotels during different periods, with confirmation from hotel officials that Parekh had stayed at those locations.
In a significant breakthrough, a WhatsApp chat between a front-runner entity, Sanjay Taparia, and “Jack Latest” revealed a birthday wish on February 15, 2023. This birthday coincided with the one listed on Parekh’s PAN card, directly linking the number associated with “Jack Latest” to Parekh and solidifying his role in instructing front-runners for trades based on non-public information.
SEBI’s meticulous investigation has led to the conclusion that Parekh actively used these contact numbers to orchestrate trades involving non-public information. These findings are expected to have a substantial impact on future regulatory actions concerning market manipulation.
The resourcefulness displayed by SEBI in uncovering Ketan Parekh’s covert operations signifies the increasing sophistication of regulatory techniques in detecting market malpractices. Through IMEI tracking, location analysis, and cross-referencing travel and personal data, SEBI has demonstrated its ability to unveil hidden networks and hold individuals accountable for market misconduct.