Stories
Ketan Parekh Secures Relief From Court Over Surety Hurdles In SEBI Cases
- •Ketan Parekh and two other co-accused informed a Special SEBI court in Mumbai that arranging separate sureties for multiple cases was practically impossible.
- •The court acknowledged the difficulty of obtaining independent sureties across numerous concurrent proceedings and allowed the accused to furnish additional cash security instead.
- •Each accused was directed to deposit an additional cash bail of Rs 50,000 on or before the next hearing date.
- •SEBI strongly opposed the plea, citing allegations of large-scale market manipulation from the 2001 stock scandal and arguing that the accused failed to demonstrate genuine circumstances for relaxation.
- •The court noted that the accused had already been granted bail in other proceedings, had some cases stayed by the Bombay High Court, and consistently attended court hearings.
Key Questions Answered
Ketan Parekh and two other accused informed the Special SEBI court that it was practically impossible to arrange separate personal sureties for each of the multiple SEBI cases they face. Consequently, the court granted relief by allowing them to furnish an additional cash security of Rs 50,000 instead of independent personal sureties for every proceeding.
SEBI opposed the plea by arguing that the accused faced serious allegations of large-scale market manipulation that caused a stock market crash and investor losses. The regulator also maintained that the accused failed to demonstrate any exceptional or legally sustainable circumstances to warrant a relaxation and claimed they had previously evaded the process of law.
The Securities Appellate Tribunal dismissed Ketan Parekh's appeal challenging SEBI's refusal to let him cross-examine two Capital Group traders in a front-running case. The tribunal ruled that the request could not be accepted because the matter had already been reserved for orders, noting that Parekh's proper remedy would be to challenge the final order.
