India's market regulator, SEBI, accused former stockbroker Ketan Parekh and 21 others on Thursday of generating millions of dollars in illicit trading profits by exploiting confidential information obtained from an unnamed foreign entity.

In an interim order, SEBI alleged that Parekh—already barred from the securities market since 2003 for stock manipulation—collaborated with others to profit from non-public details about trades planned by a "major client" whose identity remains undisclosed.

The order, which covers a period from January 1, 2021, to June 20, 2023, seeks to recover 657.7 million rupees ($7.67 million) identified as illegal gains. Parekh and 21 other individuals or entities have been given 21 days to respond. Parekh did not immediately reply to a request for comment.

SEBI has also prohibited Parekh and two others from participating in securities trading indefinitely. The regulator claims that Parekh orchestrated a scheme involving the 21 others and used advanced trading strategies to exploit prior knowledge of the "big client's" forthcoming trades.

"Evidence collected during search and seizure operations suggests that, beyond traditional front-running, complex trading strategies were employed to capitalize on insider information," SEBI noted in its order.

Front-running refers to trading stocks or other assets based on advance knowledge of market-moving transactions.

This is not Parekh's first brush with controversy. In 2003, SEBI banned him and his group companies from the securities market for 14 years due to irregularities and manipulative trades conducted during the 2000-2001 tech boom.