SEBI Probe Unlocks Mystery Client Linked to Tiger Global

January 03, 2025 • Estimated Reading Time: 2 minutes

“Trust is the cornerstone of financial markets” – Warren Buffett

In a revelatory expose of potential market manipulation, Tiger Global’s recent trading activities in PB Fintech have drawn significant regulatory scrutiny. On November 11, 2022, the investment giant executed a massive sell-off of 12.7 million shares, coinciding with an intricate alleged front-running scheme involving controversial stockbroker Ketan Parekh.

The Securities and Exchange Board of India (SEBI) has uncovered a complex web of insider trading, centered around Rohit Salgaocar, a Singapore-based consultant who reportedly leaked confidential trade information. By sharing specific details about an imminent large share sale—1.75 million shares at 382 rupees—Salgaocar allegedly enabled Parekh’s network to strategically position themselves for maximum financial gain.

The trading landscape that day was extraordinary, with PB Fintech share volumes surging to 7.93 million—nearly 60 times the daily average. Parekh’s alleged strategy involved directing associates to acquire 500,000 shares through multiple brokers before 10:02 am, anticipating predictable price movements triggered by massive institutional sales. While Tiger Global was not directly implicated, their significant market presence made them a pivotal player in this intricate narrative.

Critically, this incident underscores the persistent challenges in maintaining market integrity. Salgaocar’s firm, Strait Crossing Pte Ltd, leveraged referral agreements with major Indian brokerages, creating sophisticated channels for potential information leakage. The episode highlights the critical need for enhanced regulatory mechanisms and transparent trading practices in increasingly complex financial ecosystems.

Looking forward, this case serves as a potent reminder that market transparency isn’t just a regulatory requirement—it’s a fundamental trust mechanism. Investors, regulators, and financial institutions must collaboratively develop more robust safeguards against potential manipulation.

#MarketIntegrity #FinancialRegulation #InvestorProtection