Data obtained from YourStory indicates that Tiger Global was the sole prominent institutional investor that divested significant quantities of PB Fintech shares on a day when India’s market regulator reported illicit profits from prior knowledge of a considerable sale. The recent directive from the Securities and Exchange Board of India (SEBI) references a “Big Client”—a notable foreign institutional investor—whose trades on November 11, 2022, were purportedly front-run by the network of former stockbroker Ketan Parekh. Records from the stock exchange reveal that Tiger Global’s funds sold around 12.7 million shares of PB Fintech on that day, positioning it as the largest institutional seller. There is no implication that Tiger Global was aware of or involved in any unethical practices.
SEBI has alleged that Rohit Salgaocar, a consultant based in Singapore, informed Parekh—who has previously been barred from Indian markets for his involvement in a market manipulation scandal in 2001—regarding the imminent large share sale. Traders with prior knowledge of such significant sales can capitalise by purchasing shares beforehand and offloading them once the price falls following the substantial sale.
As per the regulator’s findings, Salgaocar disclosed specific information: the intended sale of 1.75 million shares at a price of 382 rupees. Parekh allegedly utilised encrypted WhatsApp messages to instruct his associates to acquire 500,000 shares through various brokers, including Salasar Stock Broking and GRD Securities, before 10:02 am on that day. The operation intensified as Parekh’s group anticipated additional sell orders at 384.50 rupees. The trading volume for PB Fintech (PolicyBazaar) shares surged to 7.93 million shares—almost 60 times the daily average.
On that day, two funds managed by Tiger Global executed substantial sales: Internet Fund III sold 5.16 million shares, while Tiger Global Eight Holdings disposed of 7.61 million shares. The only other significant seller was Mumbai-based Priyasha Meven Finance, but their transaction volume was notably lower.
It is essential to emphasise that the SEBI order does not specifically mention Tiger Global in any negative context. Salgaocar played a crucial role in the alleged scheme. His firm, Strait Crossing Pte Ltd, maintained referral agreements with leading Indian brokerage firms such as Motilal Oswal Financial Services and Nuvama Wealth Management. These partnerships enabled him to facilitate institutional trades while earning a portion of the brokerage fees.
The Big Client relied on intermediaries like Salgaocar to manage its transactions in the Indian market. However, Salgaocar allegedly disclosed sensitive, non-public information to Parekh. Parekh was able to issue directives to brokers and receive real-time updates concerning trade execution. SEBI claims that he relayed this information to Parekh, who then exploited it to gain from predictable price fluctuations resulting from the large trades.
