The case follows SEBI’s January 2025 interim order against Parekh and Singapore-based trader Rohit Salgaocar over alleged front-running of trades of Capital Group, a large US-based foreign portfolio investor
The Securities Appellate Tribunal (SAT) has dismissed an appeal by Ketan Parekh challenging the Securities and Exchange Board of India’s (SEBI) refusal to allow him to cross-examine two Capital Group traders in a front-running case.The tribunal said Parekh could raise concerns over any material allegedly relied upon by SEBI while challenging the regulator’s final order in the matter. “Once the matter is reserved, the only right that remains for the appellant is to challenge the final order,” Justice PS Dinesh Kumar, presiding officer of SAT, said on Monday.The bench said the request to cross-examine the two traders at this stage, after the matter had been reserved for orders, was misconceived and dismissed the appeal. He can now only challenge SEBI’s final order.The markets regulator had rejected Parekh’s request to question the two traders, saying their statements were not used to draw any adverse inference against him. The traders had also said they did not know Parekh and were not named in SEBI’s interim order.The case follows SEBI’s January 2025 interim order against Parekh and Singapore-based trader Rohit Salgaocar over alleged front-running of trades of Capital Group, a large US-based foreign portfolio investor. The regulator had ordered disgorgement of ₹65.77 crore in alleged unlawful gains.SEBI has alleged that Salgaocar had access to information on the fund’s trades in advance and communicated the information to Parekh, who allegedly used various trading accounts and associates in Kolkata to build positions before the fund executed its trades.In November 2025, SAT had allowed Salgaocar to cross-examine Parekh and directed SEBI to facilitate the process. Parekh had previously been barred from the securities market for 14 years over his role in the 2000 stock market scam.Published on August 24, 2026
