Court allows ex-stockbroker Parekh to travel abroad after depositing Rs 27 crore with SEBI

Mumbai, Nov 4 (PTI) A special court in Mumbai on Tuesday permitted former stockbroker Ketan Parekh, a key accused in a securities scam, to travel abroad provided he deposits Rs 27.06 crore dues with the Securities and Exchange Board of India (SEBI) linked to an interim order.

Parekh is facing criminal charges for his alleged role in the 2000-2001 securities scam that resulted in him being debarred from the stock market for 14 years.

He had sought permission from the court to travel to Thailand and the UAE for a family vacation and attend a wedding.

In September, special SEBI court Judge R M Jadhav rejected a similar plea, saying the court cannot consider blanket permission for traveling abroad for a period of four months as sought by the accused.

Hence, Parekh moved a fresh application praying for permission to travel abroad for a specific period. He sought nod for a family vacation in Thailand from November 5 to 9 and to attend a wedding in the UAE from November 18 to 28.

Market regulator SEBI, represented by special public prosecutor Anubha Rastogi, opposed Parekh's plea, saying there was no change in circumstances since rejection of the earlier application.

The regulator argued Parekh had previously violated securities law and misused the liberty granted by the court. It cited the possibility of the accused committing a similar offence and absconding.

The prime contention of the regulator was an unpaid amount related to an interim order by the Whole Time Member (WTM) of SEBI dated January 2, 2025.

The WTM's order mandated the impounding Rs 65,77,11,547 as total unlawful gain, to be deposited jointly and severally by the noticees (an individual or entity against whom formal notice has been issued).

The market regulator submitted the other noticees had deposited Rs 38,70,37,973 and were permitted to deal in the securities market.

However, an amount of Rs 27,06,73,574, for which Parekh and another entity were jointly and severally liable, had not been deposited yet.

Special judge Jadhav, after hearing submissions from both sides, allowed Parekh to travel overseas citing changed circumstances.

"So, considering the purpose of travel for family vacation and for attending wedding ceremonies for a limited period, I hold that the same can be allowed in the changed circumstances'. On condition of the accused depositing an amount of Rs 27,06,73,574 (Twenty Seven Crore Six Lakh or furnishing security to that effect with SEBI to the satisfaction of the SEBI)," the court ruled. PTI AVI RSY