Angadiyas, The Trusted Money Carriers, Come Under SEBI Scanner

For decades, Mumbai has had a trusted network of individuals who specialise in securely ferrying valuables — cash, jewellery, diamonds, and equally precious packages. This secretive ilk of trusted runners is known as Angadiyas.Originating in Gujarat, Angadiyas have acted as an informal financial transaction system well before the nation had a proper banking system. This network operates on mutual trust, transporting valuables back and forth between Mumbai Central Station to Gujarat.The Angadiyas now find their name embroiled in a regulatory investigation involving the infamous Ketan Parekh, who was imprisoned and barred from the capital markets for 14 years after the Stock Market Scam of 2000.Markets regulator Securities and Exchange Board of India, on Thursday, imposed a liability of Rs 65.7 crore on Ketan Parekh, Rohit Salgaocar, and others in the extended front running case. The regulator gave these directions in an interim order.SEBI observed in its order that Parekh has violated security law provisions several times, and hence it is pertinent to fix a liability for the entire scheme on the parties responsible. The regulator has said that Parekh and Salgaocar devised the scheme..Tiger Global—The 'Big Client' Behind Ketan Parekh's Front-Running Scandal .The Angadiyas utilise coded words to exchange money. They just pass on the word and the money is moved from the city of Mumbai to the other cities. The sender briefs the Angadiya, who then undertakes the journey toward the final beneficiary.This journey is usually undertaken aboard the eponymous 'Angadiya Mail', the name given to Gujarat Mail that runs between Ahmedabad and Mumbai for its popularity with the couriers.The codeword is conveyed by the sender to the beneficiary as well. Normally, a serial number on a 10-rupee note is used as verification before the transaction is carried out. Now a days, even phone numbers are used instead of currency note numbers.The Angadiyas get paid 0.2–0.5% as commission for the transaction..How Some Minor Mistakes Got Ketan Parekh Caught.The 189-page order by market regulator SEBI details the modus-operandi, manner of flow of information, Bloomberg and WhatsApp chats, and the manner of transfer of money using Angadiyas.While the network and use of Angadiyas for money transfer is very well known, and while it may not be legal, it is acknowledged by regulatory authorities. The SEBI investigation into Ketan Parekh now opens up this parallel money transfer to scrutiny.The SEBI interim report delves deep into how Angadiyas were being used to transfer money between Ketan Parekh and other alleged participants. The rising use of Angadiyas is becoming a concerns for the market regulator as this route is increasingly being used to channelise money from off-market trades or also called 'Dabba Trades'. India may have moved to electronic money transfer and real time settlements, but we seem to have forgotten that this parallel informal banking system continues to thrive, and remains prone to misuse.Maybe it is time for the 'Angadiya Mail' from Bombay Central to stop!.SEBI Imposes Rs 65.7 Crore Liability On Ketan Parekh, Others In Extended Front Running Case

Angadiyas, The Trusted Money Carriers, Come Under SEBI Scanner

A secretive group of moneyrunners, existing well ahead of formal banking came to India and trusted by merchants of yore, find themselves embroiled in the SEBI probe against Ketan Parekh.

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