The Securities and Exchange Board of India (SEBI) has displayed remarkable ingenuity in unmasking Ketan Parekh, a key player in a front-running scam, by uncovering the connections between him and various phone numbers used to mask his identity.
Cracking the Code: SEBI’s Spy-Thriller Tactics
In an interim order issued on January 2, SEBI’s Whole-time Member, Kamlesh Varshney, detailed how the regulator established Parekh’s identity despite his efforts to evade detection. Parekh, known for frequently changing his phone numbers, used multiple identities such as “Jack,” “John,” “Bhai,” and “Wellwisher” to give instructions to front-running entities (FRs). SEBI’s innovative investigation methods brought Parekh’s scheme to light.
IMEI: The Key to the Puzzle
One of SEBI’s breakthrough techniques involved tracking phone numbers linked to specific International Mobile Equipment Identity (IMEI) numbers. Parekh often changed his phone numbers but did not switch devices as frequently. This oversight proved to be his Achilles’ heel.
For instance:
- A number ending in 8243, which Parekh claimed belonged to his wife but was also used by him, was linked to an IMEI number shared with another number ending in 9917.
- Similarly, a number ending in 2996, confirmed by Parekh and his associate Rohit Salgaocar as belonging to him, shared its IMEI with another number ending in 1068.
Location Analysis: Mapping the Numbers to Parekh
SEBI analyzed call-data records to identify the nighttime locations (9 PM to 6 AM) of these numbers. This investigation revealed that the numbers were frequently located at Parekh’s residence: Zaver Mahal, 19/b, Marine Drive, Marine Lines, Mumbai.
Travel History Cross-Verification
The regulator extended its analysis by matching the phone numbers’ locations with Parekh’s travel history. By collaborating with hotels and airlines, SEBI found that several numbers were present at the same hotels where Parekh stayed during specific periods. Hotel records confirmed his presence on those dates.
Birthday Clue: A Chat that Unraveled the Mystery
In one instance, SEBI found a WhatsApp chat where a front-runner, Sanjay Taparia, wished another contact—saved as “Jack Latest”—a happy birthday on February 15, 2023. “Jack Latest” responded with thanks. SEBI noted that February 15 is Parekh’s birthday, as per his PAN card, confirming that “Jack Latest” was indeed Ketan Parekh.
The Evidence Speaks
SEBI concluded that the numbers linked to Parekh were used to communicate instructions for executing trades based on non-public information (NPI). The regulator’s combination of tech-savvy investigations and traditional detective work exposed Parekh’s attempts to outsmart the system.
SEBI’s relentless pursuit of truth underscores its commitment to maintaining market integrity. This case serves as a reminder that even the most elaborate schemes can unravel under the scrutiny of a determined regulator.