Singapore-based businessman challenges SEBI’s rejection of his request to question Ketan Parekh; Tribunal to hear further arguments on Wednesday
In a recent development, Singapore-based businessman, Mr. Rajat Agarwal, has challenged the Securities and Exchange Board of India’s (SEBI) decision to reject his request to question Mr. Ketan Parekh, a well-known stock market operator. The case is set to be heard by the Securities Appellate Tribunal on Wednesday, and the outcome could have a significant impact on the Indian stock market.
Mr. Agarwal, who runs a successful business empire in Singapore, has been entangled in a legal battle with SEBI for over a year now. In October 2020, he had filed a petition with SEBI to get permission to question Mr. Parekh, who is considered to be the mastermind behind the 2001 stock market scam. However, his request was rejected by SEBI, stating that it had already conducted a thorough investigation in the matter and there was no need for further questioning.
Disappointed with the decision, Mr. Agarwal decided to take the matter to the Securities Appellate Tribunal. In his petition, he has argued that as a foreign investor and a victim of the stock market scam, he has a right to question Mr. Parekh and gather more evidence to support his case. He has also raised questions about the credibility of SEBI’s investigation and has requested for a fair and impartial hearing.
The case has garnered a lot of attention in the Indian business community, as many believe that Mr. Agarwal’s request to question Mr. Parekh could uncover new information about the 2001 stock market scam. The scam, which caused a huge financial loss to many investors, was one of the biggest in India’s history and had shaken the confidence of foreign investors in the country’s stock market.
Analysts predict that if Mr. Agarwal’s petition is accepted by the Securities Appellate Tribunal, it could have far-reaching consequences for SEBI and its functioning. It could also lead to other victims of the scam coming forward and seeking justice.
The 2001 stock market scam, also known as the Ketan Parekh scam, involved collusion between stockbrokers, banks and companies to manipulate stock prices and make illegal profits. Mr. Parekh, who was a prominent player in the stock market at the time, was accused of orchestrating the scam by using fake bank receipts to inflate share prices. He was eventually arrested and charged with multiple offenses, including forgery and cheating.
Over the years, Mr. Parekh’s involvement in the scam has raised many questions, and there have been demands for a more in-depth investigation into the matter. Mr. Agarwal’s petition to question Mr. Parekh is seen as a step towards achieving that.
The Securities Appellate Tribunal, which was established in 1995 to hear appeals against SEBI’s orders, will play a crucial role in the outcome of this case. The tribunal is known for its fair and impartial decisions, and it is expected to give a thorough hearing to Mr. Agarwal’s arguments.
Many market experts believe that a positive outcome for Mr. Agarwal could also help in restoring the confidence of foreign investors in India’s stock market. It could send a strong message that the country’s regulatory bodies are committed to ensuring a fair and transparent functioning of the stock market.
In conclusion, the upcoming hearing at the Securities Appellate Tribunal on Wednesday is crucial and could have a significant impact on the Indian stock market. Mr. Agarwal’s fight for justice and his request to question Mr. Parekh is not only limited to his personal case but has the potential to bring to light new information about the 2001 stock market scam. As investors and citizens, it is important for us to have faith in the judicial system and hope for a fair and unbiased decision that will restore the integrity of India’s stock market.
