Mumbai: Stock market regulator SEBI has slapped a five-year ban on trading on 28 broking firms and eight individuals for their involvement in the Ketan Parekh securities scam in 1999.

G Ananthraman, whole time director, SEBI, in his order yesterday, has also debarred them from accessing capital market and associating with any intermediary in capital market for five years

SEBI says it had investigated the excessive volatility in share prices of some companies from 1 April, 2000, to 31 March, 2001 and found that the Ketan Parekh group firms and brokers were indulging in manipulating prices through synchronised trades, circular trading and creating artificial trading volumes and prices of various scrips against the interest of investors in the securities market.

The banned entities have been found guilty of aiding and abetting in the allotment process of Padmini Technologies through an unusual financial accommodation with the company and subsequently offloading the allotted shares to Ketan Pakekh entities in June 1999.

Earlier, SEBI had debarred three whole time directors of Padmini Technologies from operating in the market for three years.