SEBI bans 26 entities from trading; sees link with Ketan Parikh

05 June 2009

The market regulator, the Securities and Exchange Board of India (SEBI), has barred 26 entities from dealing in the capital markets for acting as conduits for Ketan Parekh.

In a press release published on its web site, Sebi said that these entities allegedly executed synchronised trade in five scrips, which includes Cals Refineries Ltd, Confidence Petroleum India Ltd, Bang Overseas Ltd, Shree Precoated Steels Ltd (SPSL, now known as Ajmera Realty & Infra India Ltd) and Temptation Foods Ltd (TFL).

''In all these trades, buy and sell order quantities and buy and sell order rates were same. The orders had perfectly matched and time difference between the placement of buy and sell orders was less than 60 seconds. In all the trades, connected clients were appearing simultaneously on both sides of the trade,'' Sebi said.

The major entities that have been barred include Maruti Securities Ltd, Kundan  Leasing and Finance Private Ltd, Chandra Financial Services Private Ltd, Jay Investrade Private Ltd, HSM  Financial Services Private Ltd, Shanti Financial Services Private Ltd, and Acme Craft Private Ltd.

Sebi has also referred the matter to the income tax department, Enforcement Directorate, and stock exchanges to take further action.

SEBI observed that at least five of the connected clients appear to be related to Shirish Maniar, who was implicated by CBI along with Ketan Parekh in the Madhavpura Mercantile Co-operative Bank case. (See: Stock brokers Ketan Parekh, Hiten Dalal, six others get one-year term for role in 1992 securities scam).