1 week ago
SAT dismisses Ketan Parekh appeal over trader cross-examination
A tribunal called SAT has rejected Ketan Parekh’s request to question two traders from Capital Group.
Parekh wanted to cross-examine them in a case about allegedly trading before Capital Group’s transactions.
SAT said the request came too late because the case had already been reserved for a decision.
The tribunal said Parekh can raise concerns about the evidence when he challenges SEBI’s final decision.
SEBI says the traders’ statements were not used against Parekh.
The traders also said they did not know him.
SEBI has accused Rohit Salgaocar of learning about Capital Group’s trades in advance and passing the information to Parekh.
The regulator says Parekh then used several accounts and associates to trade ahead of those transactions.
SEBI’s interim order directed the alleged gains of ₹65.77 crore to be disgorged.
The Securities Appellate Tribunal dismissed Ketan Parekh’s appeal against SEBI’s refusal to permit cross-examination of two Capital Group traders.
SAT said Parekh can challenge material relied upon by SEBI when contesting the regulator’s final order.
The tribunal found his request misconceived because the matter had already been reserved for orders.
SEBI said the traders’ statements were not used to draw adverse conclusions against Parekh, and the traders said they did not know him.
The case concerns alleged front-running involving Parekh, Rohit Salgaocar and Capital Group trades, with ₹65.77 crore ordered to be disgorged in SEBI’s January 2025 interim order.
- Who
- Ketan Parekh, SEBI, SAT, two Capital Group traders and Singapore-based trader Rohit Salgaocar.
- What
- SAT dismissed Parekh’s appeal seeking permission to cross-examine two Capital Group traders in an alleged front-running case.
- Where
- The matter was heard by the Securities Appellate Tribunal in India and involves Capital Group trades and a Singapore-based trader.
- When
- The decision was reported as published on August 24, 2026; SEBI issued its interim order in January 2025, and SAT previously ruled on Salgaocar’s cross-examination in November 2025.
- Why
- SAT said the cross-examination request was misconceived because the matter had been reserved for orders; Parekh may instead challenge SEBI’s final order.
Ketan Parekh’s position
SEBI and SAT’s position
Cross-examination request
Ketan Parekh’s position
Parekh challenged SEBI’s refusal to let him question two Capital Group traders.
SEBI and SAT’s position
SEBI rejected the request, and SAT said seeking cross-examination after the matter was reserved for orders was misconceived.
Relevance of trader statements
Ketan Parekh’s position
Parekh’s appeal sought to examine the traders in connection with the front-running allegations.
SEBI and SAT’s position
SEBI said the traders’ statements were not used to draw any adverse inference against Parekh, while the traders said they did not know him.
Next legal step
Ketan Parekh’s position
Parekh can continue contesting the case through challenges related to SEBI’s final decision.
SEBI and SAT’s position
SAT said that once the matter was reserved, the remaining right was to challenge the final order and any material relied upon by SEBI.
Key facts
- Tribunal
- Securities Appellate Tribunal (SAT)
- Regulator
- Securities and Exchange Board of India (SEBI)
- Appellant
- Ketan Parekh
- Case issue
- Alleged front-running of Capital Group trades
- Interim order
- SEBI issued it in January 2025 against Parekh and Rohit Salgaocar
- Disgorgement ordered
- ₹65.77 crore in alleged unlawful gains
- Current legal option
- Parekh can challenge material and the outcome through SEBI’s final order process
Quotes
Justice PS Dinesh Kumar
Presiding officer of the Securities Appellate Tribunal
“Once the matter is reserved, the only right that remains for the appellant is to challenge the final order”
thehindubusinessline.com
Sources
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