Parekh, however, dismissed suggestions that the latest CBI move could be part of some larger political conspiracy ahead of general elections.
"I don't see that possibility," he said, when asked whether the bureaucrats and regulators were being targeted as part of some conspiracy ahead of elections.
"I am saddened and pained to hear that a person of his calibre, his integrity and such an excellent service record is being subjected to such things.
"If such things happen, which public officer, which bureaucrat and which regulator would take any decision. When genuine persons are being subjected to such harassment, how can anyone blame bureaucrats for not taking decisions.
Asserting that CBI was "going after a wrong person", Parekh said he had "heard of some cases when he (Bhave) was pressurised to do things which were not right and to give favours to people, but he never heeded to any of them.
"He never did anything wrong and he did not even get an extension as Sebi Chairman."
"So many people including Jairam Ramesh have criticised the move and you can ask anyone who has had working relationship with him and he would say the same thing," he added.