Parekh and 17 other entities directly or indirectly associated or related to him were found to be involved in market manipulation of as many as nine stocks, Sebi said in its order.

Purchase probe

This was revealed after a Sebi probe into purchase, sale and dealings in the shares of Himachal Futuristic Communications Ltd, Zee Telefilms, Adani Exports, Global Tele Systems, Ranbaxy, Shri Adhikari Brothers TV Network, Shonkh Technologies International, Padmini Technologies and Aftek Infosys between October 1999 to March 2001.

Issuing an order to this effect on Monday evening, the stock market regulator said it has passed an order restraining Ketan V Parekh and his 10 associates namely his brother Kartik K Parekh, Classic Credit Ltd, Panther Fincap & Management Services Ltd, Luminant Investment Pvt Ltd, Chitrakut Computers Pvt Ltd, Saimangal Investrade Ltd, Classic Infin Ltd, Panther Investrade Ltd, Goldfish Computers Pvt Ltd and Nakashtra Software Pvt Ltd from accessing securities market.

Ban on trading

It also prohibited them from buying, selling or otherwise dealing or associating with the securities market in any manner whatsoever, whether directly or indirectly, for a period of 14 years. Similar orders have been passed against Navinchandra N Parekh, Kirtikumar N Parekh, Jayant N Parekh and Vipul D Parekh for a period of one year and against Triumph International Finance India Ltd, Triumph Securities Ltd and NH Securities Ltd for five years.

Sebi arrived at this decision after it probed the buying, selling and dealings in the scrips of Himachal Futuristic Communications Ltd, Zee Telefilms Ltd, Adani Exports Ltd, Global Tele-Systems Ltd, Ranbaxy Laboratories Ltd, Shri Adhikari Brothers Television Network Ltd, Shonkh Technologies International Ltd, Padmini Technologies Ltd and Aftek Infosys Ltd during the period October 1999 to March 2001.

Market manipulation

The probe revealed that Ketan Parekh and 17 other entities linked to him were involved in market manipulation in the aforesaid scrips in violation of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations 1995 and/or SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 1997. Ketan was found to be the mastermind behind the acts of omission or commissions by the 17 entities.

Ketan, Kartik and seven other entities covered by the orders, have already been restrained from participating in securities market under a Sebi order of December 12, 2003. Monday’s orders will be effective in their case from December 13, 2003. In case of others it will be effective from November 12, 2003.