A special court handling cases for the Securities and Exchange Board of India (Sebi) has granted controversial stock broker Ketan Parekh permission to undertake two short trips abroad this month. The decision comes despite strong objections from the market regulator, which argued that Parekh could misuse this liberty given his history of alleged financial irregularities.
Court Upholds Right to Travel as Personal Liberty
In its order, the court emphasized that the right to travel is a fundamental aspect of personal freedom. The judge explicitly stated, "The right to travel abroad has been considered to be a facet of the right to life and personal liberty." The court further noted that in contemporary times, such travel is often an essential requirement rather than a luxury.
The judge distinguished the current application from Parekh's earlier, more expansive requests. While previous pleas for a blanket four-month travel window were denied, the present application was for two specific, short-duration trips. Ketan Parekh is scheduled to visit Sri Lanka for a family holiday from January 15 to 20, followed by a trip to Qatar for a family wedding between January 22 and 27, 2026.
Sebi's Objections and the Rs 27 Crore Penalty
The prosecution, representing Sebi, vehemently opposed the travel plea. They cited Parekh's alleged involvement in serious market violations. It was submitted that Parekh, along with an associate named Rohit Salgaonkar, orchestrated a "front-running" scheme designed to profit from non-public information, leading to wrongful gains estimated at approximately Rs 27 crore.
The prosecution expressed fears that Parekh might misuse the liberty, potentially even absconding, especially since he has not yet deposited the Rs 27 crore penalty imposed by a Sebi order from 2025. However, the court pointed to a crucial Bombay High Court ruling from November 2025. The High Court had previously set aside the special court's condition requiring Parekh to deposit the Rs 27 crore as a prerequisite for travel.
Referring to this, the judge stated, "I found that the above submission of SPP (Special Public Prosecutor) cannot be taken into consideration in view of the order of the… Bombay High Court." The court also noted that Parekh had complied with all conditions during his previous authorized travels abroad and had always returned to India.
Stringent Conditions Attached to the Permission
While granting permission, the court has imposed several strict conditions on Ketan Parekh to mitigate risk:
- He must deposit an additional security amount of Rs 50,000.
- He is required to provide a detailed travel itinerary, including contact details for two individuals in India and at his foreign destinations.
- Upon returning from both Sri Lanka and Qatar, he must personally appear before the court.
The court order clearly directed Parekh "not to misuse the liberty granted to him." Concluding the rationale, the judge said, "No reason appears for refusing to consider the prayer of the… accused for travelling abroad." This case highlights the ongoing legal tussle between regulatory enforcement actions and the judicial protection of individual rights.
