How SEBI Cracked The Case Of Ketan Parekh’s Secretive Trading Network

The Securities and Exchange Board of India (SEBI) has recently unveiled an elaborate investigation into Ketan Parekh’s attempts to conceal his identity and evade detection using multiple phone numbers. In a thrilling revelation akin to a spy novel, SEBI traced these numbers back to Parekh using innovative techniques. This move came after Parekh used a series of disguised identities and mobile numbers to instruct front-runner (FR) entities involved in securities market manipulation.

SEBI’s Spy-like Approach to Uncovering the Web of Numbers

Parekh’s strategy was simple yet deceptive: he kept altering his phone numbers to avoid regulatory scrutiny. However, SEBI’s creative investigative methods led to a breakthrough. Through a meticulous analysis of mobile phone records and advanced investigative tools, SEBI uncovered the real identity behind the numbers.

One of SEBI’s key moves was tracking International Mobile Equipment Identity (IMEI) numbers, a method that proved to be Parekh’s downfall. While he frequently changed phone numbers, he didn’t replace his devices at the same pace. This discrepancy allowed SEBI to trace Parekh’s connections to the numbers used for executing non-public information-based trades.

For example, one phone number, ending in 8243, was registered by Parekh as belonging to his wife, though he frequently used it himself. The IMEI linked to this phone was also associated with another number ending in 9917, helping SEBI establish a clear link to Parekh.

Location Tracking: Connecting the Dots

SEBI then analyzed the call-data records to track the locations of Parekh’s mobile numbers during night-time hours (9 pm to 6 am). This investigation revealed that these numbers were frequently located at Parekh’s Mumbai residence at Zaver Mahal, Marine Lines. This crucial piece of evidence reinforced the link between Parekh and the numbers used for suspicious trading activity.

To further validate the connection, SEBI cross-checked mobile number locations with travel records, including hotel stays and airline bookings. The regulator found that several of the numbers Parekh used were located together at various hotels during different periods, with confirmation from hotel officials that Parekh had been staying at those locations.

Birthday Evidence: A Direct Link to Ketan Parekh

In a breakthrough WhatsApp chat, a front-runner entity, Sanjay Taparia, wished “Jack Latest” a happy birthday on February 15, 2023. The birthday date matched the one listed on Parekh’s PAN card. This discovery directly linked the number associated with “Jack Latest” to Parekh, further proving that Parekh was using these numbers to communicate instructions to front-runners for executing trades based on non-public information.

With these detailed analyses, SEBI concluded that Parekh was actively using these contact numbers to instruct the execution of trades involving non-public information. These revelations are expected to play a pivotal role in future regulatory actions related to market manipulation.

SEBI’s Resourcefulness Leads to New Insights

The SEBI investigation into Ketan Parekh’s covert operations showcases the growing sophistication of regulatory methods in detecting market malpractices. By leveraging IMEI tracking, location analysis, and cross-referencing travel and personal data, SEBI demonstrated its capability to uncover hidden networks and hold individuals accountable for market misconduct.