Ketan Parekh-linked scrips hit lower circuits
A day after the SEBI barred 17 entities and 9 individuals from the securities market for executing synchronised deals in five scrips and found them working as fronts for disgraced stockbroker Ketan Parekh, three of the five stocks involved in fraudulent trading hit the lower circuit on the stock exchanges on Friday.business Updated: Jun 05, 2009 21:17 IST
A day after the Securities and Exchange Board of India (SEBI) barred 17 entities and 9 individuals from the securities market for executing synchronised deals in five scrips and found them working as fronts for disgraced stockbroker Ketan Parekh, three of the five stocks involved in fraudulent trading hit the lower circuit on the stock exchanges on Friday.
The three stocks were Cals Refineries, Confidence Petroleum India and Temptation Foods that closed at Re 1, Rs 12.37 and Rs 46.25 respectively. The stocks which managed to avoid the circuits were Bang Overseas Limited at Rs 107 and Shree Precoated Steels Limited — now Ajmera Realty & Infra India Ltd – at Rs 47.25.
SEBI said that as Parekh and his group firms had been barred from the market for 14 years, he conveniently used “connected clients” as his front entities to execute trades.
Of the 26 connected entities, two individuals, Harsh Shirish Maniar and Jay Shirish Maniar, are sons of Shirish Maniar, who was chargesheeted by the CBI along with Parekh in a case involving the Madhavpura Mercantile Co-operative Bank.
There were inter-linkages between one of the entities and the Maniar Group in the form of off-market transactions as well as synchronised deals in on-market transactions. The market regulator observed a possibility that some of the funds originating from Parekh and routed to the connected clients may have been used by connected clients to deal in the securities market.
The 10 shares that Parekh had traded in, which later were dubbed K-10 shares, seemed untouched by the news.
Himachal Futuristic Communication Ltd was trading at Rs 16.20, down 2.7 per cent while GTL Ltd was at Rs 288.15 up 0.31 per cent. Pentamedia Graphics hit the upper circuit at Rs 3.70. Satyam Computers was down 7 per cent at Rs 66.55.