Ketan Parekh in mega stock-market scam - again!

The unearthing of a mega scam on the bourses, perpetrated by rogue broker Ketan Parekh (KP) and several other major players, led to the tanking of the ‘ manipulated’ stocks on Monday.

Fearing a crackdown by market regulator Securities and Exchange Board of India ( SEBI) following Mail Today’s publication of the damning Intelligence Bureau ( IB) findings on Saturday, panicky investors deserted the counters associated with KP and his associates.

Goenka Diamond, one of the stocks named in the report, reported the sharpest fall by plunging 20 per cent to hit the lower circuit filter. Without the circuit filter, the stock could have plummeted further. The stock finally closed with a loss of 19.95 per cent at Rs 161.75.

Dewan Housing Finance Ltd, a Mumbai- based mortgage firm run by Kapil Wadhavan, also fell sharply to close with a loss of 14.49 per cent at Rs 156.40. In a statement to the BSE, the firm said: “The company and its promoters categorically deny any knowledge of such manipulation or any connection whatsoever with the so called brokers/ manipulators as reported in the media.

“As one of the leading housing finance institutions in the country, we would also like to place on record that DHFL has always complied with and continues to adhere to all directions/ guidelines laid down by the market regulator from time to time with strong corporate governance practices,” the firm contended.

Hyderabad- based infrastructure major IVRCL, another company whose name figured in the top- secret IB document, dipped 6.70 per cent to close at Rs 49.45 on news that KP and Company were jacking up these shares through circular trading. This entity was recently in the news because it was facing a hostile takeover bid by the Subhash Chandra- led Essel Group.

Mumbai- based jewellery firm Tribhovandas Bhimji Zaveri ( TBZ), which recently launched an initial public offer ( IPO), was also bear- hammered on Monday after its name found mention in the IB report. TBZ went down by 6.13 per cent to close at Rs 111.80.

GMR Infra headed south by 4.96 per cent to close at Rs 24.90 and the stock managed to recover a bit towards the end of the closing session. Orchid Chemical, which was among the firms under the scanner, was eroded by 5.11 per cent and closed at Rs 118.95.

Pantaloon Retail closed with a loss of 3.54 per cent at Rs 185.20, while penny stock KS Oil saw 5.61 per cent of its value being shaved off as it closed at Rs 5.72.

Sanghvi Forgings, too, bore a loss of 2.76 per cent after which it stood at Rs 84.60.

All these stocks plummeted soon after the beginning of trading hour when the news about KP’s surreptitious resurrection and the manipulation fraud hit the market. Only a few stocks managed a minor recovery from the day’s low. The IB report and details of KP’s involvement in rigging share prices was the main topic of discussion among brokers during the day.

Two stocks — Kiri Industries and Gokul Refoils — that were named in the report bucked the trend and surged on Monday. Kiri Industries gained 4.88 per cent to close at Rs 24.70 and Gokul Refoils closed at Rs 76.30, up 0.59 percent.

“This reaction was inevitable. There was large- scale selling pressure at the counters named in the report because people are apprehensive of regulatory action,” Deven Choksey, managing director of K. R. Choksey Share & Securities, said.

“There is fear in the minds of the people that SEBI would take notice and they will be affected as and when action is taken. That is why the stocks came under pressure. They will continue to suffer till there is clarity on the matter,” he observed.

According to brokers, SEBI should allow liquidity of stocks which do not attract buying attention from institutions and retail investors rather than looking into market manipulations.

“The regulator should design a system to allow liquidity to such stocks. Out of over 6,000 listed companies, only 200 are active in the market. What will the investors of the remaining 5,800 companies do? Where will they go?” a broker asking not to be named wondered.

“Operators like KP give them an opportunity to exit from a risky company. Now, the regulator should give investors the chance to exit,” the broker added.

Another broker said: “It is a well- known fact in the market that KP and Co have been operating. They are not here for charity. They are doing business and will continue to do so.” Alex Mathews, research head of Geojit BNP Paribas Financial Services, pointed out: “These stocks were rising sharply in the last few days and today they corrected due to profit booking, maybe partly due to the overbought position.”

Kishor Ostwal, CMD, CNI Research, was of the view that the stocks allegedly associated with KP in a report corrected on Monday owing to a knee- jerk reaction.

"These stocks will bounce back. Brokers sold these stocks and asked their clients to sell because most of the stocks were financed and no one could have taken the risk,” he felt.

Reproduced From Mail Today. Copyright 2012. MTNPL. All rights reserved.

Latest News

  • AT&T agrees in principle to buy Time Warner for $85 billion - sources

    AT&T Inc has reached an agreement in principle to buy Time Warner Inc for about $85 billion, sources said on Friday, paving the way for what would be the biggest deal in the world this year, giving the telecom company control of cable TV channels HBO and CNN, film studio Warner Bros and other coveted media assets. AT&T, which sells wireless phone and broadband services, has already made moves to turn itself into a media powerhouse, buying satellite TV provider DirecTV last year for $48.5 …

  • U.S. to seek ex-HSBC executive's extradition from Britain

    The United States will seek the extradition from Britain of a former HSBC Holdings Plc (HSBA.L) executive accused of participating in a fraudulent scheme involving a $3.5 billion currency transaction, prosecutors said on Friday. In a letter filed in federal court in Brooklyn, prosecutors said the U.S. government will initiate formal proceedings to seek Stuart Scott's extradition after learning he did not wish to come to the United States voluntarily to face the charges. …

  • Wall Street Week Ahead - Second wind for stocks as earnings turn posit …

    With S&P 500 earnings on track to rise after four consecutive quarters of contraction, U.S. stocks are clearing a major hurdle that puts the record high in sight for the benchmark U.S. stock index. The S&P 500 hit a record high in mid August even after the long profit slump. "The magnitude of the beats we’ve had is really important," said Art Hogan, chief market strategist at Wunderlich Securities in New York. …

  • Bombardier to cut 7,500 more jobs through 2018, mostly in rail
    Bombardier to cut 7,500 more jobs through 2018, mostly in rail

    Bombardier Inc (BBDb.TO) said on Friday it would cut 7,500 jobs, mostly in its train-making division, in a second round of layoffs announced this year, following extended delays and budget overruns in its aerospace business. About two-thirds of the jobs are in Bombardier Transportation, the Germany-based rail unit which had already been slated to eliminate about 3,500 workers. Bombardier, which ended 2015 with 70,900 employees, said in February it would cut 10 percent of its workforce over …

  • Oil up on Russia-OPEC hopes; U.S. rig count jump limits gains
    Oil up on Russia-OPEC hopes; U.S. rig count jump limits gains

    Oil settled up on Friday on hopes Russia and OPEC will reach agreement at the weekend on market support initiatives to keep crude above $50 a barrel, although traders cautioned about pressure from a double-digit rise in the U.S. oil rig count. Russian Energy Minister Alexander Novak said he would make proposals to his counterpart from OPEC leader Saudi Arabia this weekend on price-supportive measures that could include an oil production freeze. Some traders were sceptical about Russia's …

  • McDonald's U.S. sales revive amid stiff competition
    McDonald's U.S. sales revive amid stiff competition

    Sales at established U.S. restaurants rose 1.3 percent, amid industry softness that executives partly blamed on lower grocery prices that encouraged some diners to cook at home. The result from the United States, which accounts for about 40 percent of overall profit at McDonald's, just exceeded analysts' lowered expectations, and was not as robust as the 2 percent U.S. same-store sales gain reported by rival Dunkin' Brands Group Inc (DNKN.O) on Thursday. McDonald's international restaurants …

  • Dollar hits eight-month high; global stocks post weekly gain
    Dollar hits eight-month high; global stocks post weekly gain

    The dollar rose to its highest since early February against a basket of currencies on Friday as investors increased bets on higher U.S. interest rates, while a measure of world stocks posted its first weekly gain in four weeks despite some soft U.S. corporate results. On Wall Street, energy and healthcare stocks weighed on the S&P 500 and Dow, but Microsoft touching an all-time high moved the Nasdaq to positive territory. "If companies cannot beat estimates in this (low-rate) environment, it …

  • Wall St ends little changed; Microsoft hits record
    Wall St ends little changed; Microsoft hits record

    The S&P 500 and the Dow were little changed and the Nasdaq advanced on Friday as a record day for Microsoft and earnings from McDonald's helped offset a fall in energy and healthcare shares. General Electric (GE.N), often seen as an economic bellwether, weighed on the market as the industrial conglomerate's posted results that topped expectations but cut its full-year revenue target to send shares down 0.9 percent after it touched an 8-month low of $28.33. "The dollar is getting stronger, …


  • This is the sector PM Modi believes can be India's job machine

    In June 2016, Modi took the initial steps towards fulfilling his promise of creating mass jobs for the young, close to two years after taking over as prime minister. A lot of pieces need to fall in place ... …

  • Innovation at a Price

    The new Moto Z is a fine phone, but its projector module is far from perfect. …

  • OPEC's Slippery Road

    Its diminishing influence and internal differences suggest that low oil prices will continue. …

  • Worth a Watch

    While similar in looks to the previous apple watch, this one is packed with new features. …

  • The Politics of Black Money

    The decisive role money plays in polls is a catalyst for the rampant corruption and unchecked black money in the country. …

  • You're Hired

    Companies are increasingly turning to social media to hire talent. …

  • Forced Merger

    State Bank of India seems to be biting off more than it can chew by merging five associate banks with itself. …


  • Most Actives
    Most Actives
    NamePriceChange% Chg
  • Price % Gainers
    Price % Gainers
    NamePriceChange% Chg
  • Price % Losers
    Price % Losers
    NamePriceChange% Chg


Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
to view quotes in your portfolios.

Yahoo Cricket