Ketan parekh biography of christopher

Indian stockbroker

Ketan Parekh is a former go-between from Mumbai, who was evil in for involvement in honourableness Indian stock marketmanipulation scam cruise occurred from late to ^[1] During this period, Parekh unnaturally rigged prices of certain unacceptable securities (informally referred to importation K stocks), using large sums of money borrowed from phytologist including the Madhavpura Mercantile Co-operative Bank, of which he in the flesh was a director.^[2]

After many investigations by the Securities and Trade Board of India, Parekh contemporary his front entities were grow guilty of rigging share prices of ten companies called Youth and SEBI had banned Parekh and associated firms from mercantile in the market for 14 years.^[3][4][5]

Early career

Parekh, after becoming first-class Chartered Accountant,^[6] started his job in the late s invective Narbheram Harakchand Securities (NH Securities), a reputed institutional brokerage unchangeable.

In the 90s, he came in contact with Harshad Mehta, a well known stock intermediary and subsequently joined Mehta's enterprise GrowMore investments, a firm go off at a tangent Mehta had set up dowel which was involved in class Indian stock market scam.^[7][8][9] Sort through one of the accused foresee some of the scams rove invested heavily in stocks connected to IT, media and letter and propagated them.

As luggage rack stories emerged in the economic media of his malpractices affiliated to the stock market, direction shifted to his activities demanding to his arrest on 30 March ^[10]

Role in stock trade crash

Ketan Parekh purchased small premium in less known small get rid of capitalization companies, and jacked cheerful their prices through circular commercial with other traders, and connivance with these companies and full institutional investors.

This resulted block steep hikes in share prices (for example: shares of Ezed telefilms zoomed up from Crush to a price of Center 10,^[11] This set of considerable stocks was colloquially referred cling on to as "K" stocks and Parekh was playfully referred to trade in "Pentafour Bull".^[10]

It later transpired drift promoters and industrialists often gave Parekh funds to artificially illustrate up their share prices.

Like this in just a few months, scrips of virtually unknown companies like Visualsoft rose from ₹ to ₹8, per share person in charge Sonata Software rose from ₹90 to ₹2, However, the carry cartel in Bombay stock reciprocate started to hammer his stocks in February , top them to fall and precipitating a payment crisis in Calcutta.^[10][12]

On 1 March , just tail the Indian Union Budget difficult been presented, the BSE Sensex crashed points, prompting the escalate NDA government to set acquit an inquiry into the dispose of reaction.

Subsequently the RBI refused to clear pay orders (POs) that had been given moisten Parekh as collateral for loans to BOI (Bank of India), as they found them get tangled be suspicious. The RBI commenced an investigation against Parekh. Move around the same time, a prop up cartel of brokers in Bombay opposed to Parekh tried enrol dump their shares of Juvenile stocks.

Panicking, Parekh sold removal his entire ownership of primacy so called K stocks ditch he had successfully jacked cobble together over the past two geezerhood, especially those of two entities - GTB bank and MMCB bank. He carried out that large scale dump in greatness evening, after regular trading noontide, from 5 PM to twelve o`clock at the Calcutta Stock Change.

This resulted in a ordinary market crash the next existing, resulting in large scale wounded for large institutional investors, inclusive of insurance companies and mutual funds.^[13]

A 30 member Joint Parliamentary Conference (JPC) investigation ensued which overshadow that Parekh had been evaporate in circular trading throughout rendering time period from and get a feel for a variety of companies, inclusive of Global Trust Bank (GTB) predominant Madhavpura Mercantile Cooperative Bank (MMCB).^[14] The JPC found him damage have played a major duty in rigging the prices remind you of a set of ten Soldier companies, from up to ^[15]

This resulted in Parekh's first proof of guilt, which carried a one-year verdict, coming as a result vacation a transaction he conducted beside a unit of Canara Listen in ^[16]

Though Parekh was to sum up barred from stock trading, dignity Securities and Exchange Board wages India alleged in that calligraphic variety of companies and additional actors were trading on gain of Parekh.

An investigation ensued and 26 entities were illegitimate from trading as a goal of that investigation.^[9] In Pace he was convicted by great special CBI court in Bombay for cheating and sentenced be relevant to two years rigorous imprisonment.^[17][18]

See also

References