In a significant legal development, a special court in Mumbai has rejected former stockbroker Ketan Parekh’s request to travel abroad from October 4, 2025, to February 3, 2026. The court cited concerns over potential misuse of the permission and risks to national financial interests, particularly in light of ongoing investigations into Parekh’s alleged involvement in securities market manipulation.
Allegations of Securities Market Manipulation
Parekh, once a prominent figure in India’s stock market, is facing charges under the Securities and Exchange Board of India (SEBI) Act for his alleged role in manipulating the stock prices of Lupin Laboratories during the early 2000s. The case, which is currently at the evidence-recording stage, involves allegations that Parekh and his associates used fraudulent means to inflate the company’s stock prices, deceiving investors and violating securities laws.
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SEBI’s Opposition to Travel Request
The Securities and Exchange Board of India (SEBI) strongly opposed Parekh’s travel request, arguing that granting permission could facilitate unlawful activities and impede the ongoing investigation. SEBI highlighted Parekh’s past misuse of travel permissions, including using them as a cover for illegal trading activities. The regulator also noted that Parekh owns no property within the court’s jurisdiction and that both of his daughters reside abroad, raising concerns about his potential flight risk.
Legal Implications and Future Proceedings
The court’s decision underscores the judiciary’s commitment to upholding the integrity of financial markets and ensuring that individuals facing serious charges remain accountable. As the case progresses, the legal community and investors alike will be closely monitoring developments, particularly regarding the enforcement of securities laws and the protection of investor interests.
