Mumbai: In an ad interim ex parte order on Thursday, the Securities and Exchange Board of India (Sebi) has restrained at least 26 persons and entities connected with Ketan Parekh from accessing the securities market and barred them from buying, selling or dealing in securities market, directly or indirectly, till further orders. It gave them 15 days to respond to the order.
It also directed the Bombay Stock Exchange to examine the dealings of Chimanlal Maneklal Securities Pvt. Ltd in the shares of Cals Refineries Ltd which prima facie is in violation of Sebi regulations, the markets regulator said.
Barred: A file photo of Ketan Parekh. Sebi had on 12 December 2003 debarred Parekh from dealing in the markets for 14 years.
Sebi also referred to the Enforcement Directorate the task of tracing the flow of funds from Parekh through associated entities into the securities market, and whether there had been any attempt to disguise its path.
Sebi also found that five entities connected with Parekh—Maruti Securities Ltd, Kundan Leasing and Finance Pvt. Ltd, Chandra Financial Services Pvt. Ltd, Jay Investrade Pvt. Ltd, and HSM Financial Services Pvt. Ltd—had executed synchronized deals in five stocks: Cals Refineries Ltd, Confidence Petroleum India Ltd, Bang Overseas Ltd, Shree Precoated Steels Ltd (now known as Ajmera Realty and Infra India Ltd) and Temptation Foods Ltd.
Sebi had on 12 December 2003 debarred Parekh and 10 associates from dealing in the markets for 14 years; the order is still in force.
Separately, Sebi’s whole time member K.M. Abraham warned and directed Indiabulls Securities Ltd to strictly abide by laws, rules and regulations that govern dealings in the securities market.