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

  • Telangana moots Data Analytics Park in Hyderabad

    Hyderabad, Aug 1 (IANS) The Telangana government on Saturday proposed to set up here a Data Analytics Park, which will be the first of its kind facility in the country. State Information Technology Minister K. Tarakarama Rao floated the proposal while inaugurating the office of Techwave Consulting Inc, a US headquartered global system integrator. He said that they propose to set up the park as data analytics is an emerging technology and has a good future, noting companies are flooded with …

  • Modi pushes exports, ethanol fuel to lift sugar economy

    New Delhi, Aug 1 (IANS) Prime Minister Narendra Modi on Saturday called for higher ethanol content in petrol and a concerted effort to push exports in a bid to lower the current sugar surplus and protect the interests of farmers to whom factories owe an estimated Rs.15,000 crore in cane arrears. …

  • Automobile manufacturers report healthy July sales

    Passenger automobile major Maruti Suzuki's July sales grew by 20.1 percent to 121,712 units from an off-take of 101,380 units in the corresponding month of 2014. The company's domestic sales rose by 22.5 percent at 110,405 units. Chennai-based Hyundai Motor India's sales rose by 5 percent to 50,408 units - up from 48,014 units sold in the corresponding month of 2014. …

  • Delhi slashes VAT rates on cutlery, wax and wood

    New Delhi, Aug 1 (IANS) The Arvind Kejriwal-led Delhi government on Saturday slashed VAT rates on all cutlery items made of metal from the existing 12.5 percent to five percent, an official statement said. VAT rates on wax, wood and timber items were also reduced. "In keeping with the Delhi government's agenda of implementing pro-people tax reforms, the finance department has notified more than seven per cent reduction in the Value Added Tax (VAT) charged on the items falling in three …

  • Explore possibilities of sugar export, says Modi

    New Delhi, Aug 1 (IANS) Prime Minister Narendra Modi on Saturday called for exploring all possibilities for export of sugar to address the current supply-demand issues with regard to the sector. At a high-level meeting to review the issues related to the sugar sector, he took note of the current supply-demand issues with regard to sugar and called for assiduous efforts to increase ethanol blending of fuel, an official release said here. He also called for exploring all possibilities for …

  • Textile sector seeks sops, reliefs to spur exports

    New Delhi, Aug 1 (IANS) The textile sector on Saturday sought from the government more funds for technology upgrade, duty reduction on man-made fibres (MMF) and interest subvention to spur exports. "We have urged Finance Minister Arun Jaitley to allocate adequate funds for technology upgradation, cut duties on MMF and restore interest subvention for exporters," a trade body representative said in a statement here. In a representation to Jaitley, the Federation of Indian Chamber of Commerce …

  • Srei Infra Finance' Q1 net profit up

    Kolkata, Aug 1 (IANS) Srei Infrastructure Finance Limited on Saturday posted a substantial increase of 73 percent in its net profit at Rs.23.32 crore during the quarter ended June 30 as against Rs.13.47 crore in the previousquarter ending March 31. The successive interest rate reductions by the RBI has also facilitated in lowering interest costs marginally, which has improved our profit. …

  • Transport Corporation of India Q1 net up 17 percent

    Mumbai, Aug 1 (IANS) Transport Corporation of India on Saturday posted an increase of 17 percent increase in its net profit at Rs. 18.8 crore for the quarter ended June 30 as against Rs. 16 crore in the ... …

DON'T MISS

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    27.25+1.45+5.62%
    SPICEJET.BO
    21.900.000.00%
    SUZLON.BO
    151.20-1.60-1.05%
    IDFC6.BO
    302.50+11.55+3.97%
    ICICIBANK.BO
    26.70+4.45+20.00%
    ANDREWYU.BO
  • Price % Gainers
    Price % Gainers
    NamePriceChange% Chg
    116.75+28.75+32.67%
    PALRED.BO
    35.40+5.90+20.00%
    PRANAVSP.BO
    26.70+4.45+20.00%
    ANDREWYU.BO
    27.00+4.50+20.00%
    MRSS.BO
    114.65+19.10+19.99%
    PUNJCOMMU.BO
  • Price % Losers
    Price % Losers
    NamePriceChange% Chg
    2,662.05+402.90+17.83%
    BSX.BO
    35.60-8.90-20.00%
    SKFL.BO
    51.65-10.25-16.56%
    WALLFORT.BO
    283.70-55.00-16.24%
    NUCLEUS.BO
    23.00-3.90-14.50%
    CAMEXLTD.BO

QUOTES

 
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.
 
Sign-in to view quotes in your portfolios.

Yahoo Cricket