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

  • Beijing aims to refill medicine chest with "Made in China" drugs

    China, already a global powerhouse in high-tech areas from solar panels to bullet trains, is turning its industrial might to the challenge of making more of its own drugs for a vast and ageing population. Given the 10 years or more it typically takes to bring a new medicine to market, original "Made in China" treatments won't arrive overnight, but multinationals are already encountering more competition from local generic drugs that look set for a quantum leap in quality. China is the world's …

  • Satya Nadella to visit Hyderabad next month

    Hyderabad, Nov 28 (IANS) Microsoft Corporation CEO Satya Nadella will visit his home town Hyderabad next month, an official said on Saturday. A Telangana government official told IANS that Nadella will ... …

  • Indian drugmaker Biocon's revenue could hit $1 bln in 4 years - MD
    Indian drugmaker Biocon's revenue could hit $1 bln in 4 years - MD

    India's biggest biotech firm Biocon Ltd expects revenue to double to $1 billion in four years as it expands in Europe and the United States with new products, its chairperson and managing director said on Saturday. In a tie-up with U.S. generic drugmaker Mylan NV, the Bengaluru-based biopharmaceutical firm has five biosimilar products - almost identical copies of original drugs - entering global regulatory approval stage which is expected to take about 18-20 months. “We forecast that by …

  • Railways to sign two JV deals for loco production

    Electric Locomotive Factory at Madhepura and Diesel Locomotive Factory at Marhowra - are worth Rs.40,000 crore. Earlier this month, Indian Railways was awarded letters of acceptance for setting up these two modern locomotive factories. While the contract for the Marhowra factory has been awarded to US' GE Global Sourcing India, the contract for Madhepura has been awarded to France's Alstom Manufacturing India. …

  • Air India might start Delhi-Washington flight: Minister

    New Delhi, Nov 28 (IANS) In a bid to expand its international operations, national passenger carrier Air India might start a direct flight between New Delhi and Washington DC. This was announced by Civil Aviation Minister Ashok Gajapathi Raju on the sidelines of an event to mark the launch of Air India's direct flight connecting New Delhi to San Francisco held on Friday evening. "Air India is actively pursuant to connect more Indian cities to the US," Raju told reporters. …

  • Bengal sets up Sixth Pay Commission

    The decision comes eight days after the central government constitutes the Sixth Pay Commission for its staffers and other employees. With the state employees lagging far behind their central counterparts in the dearness allowance component of their salary, there was much pressure on the West Bengal government to set up the commission. Indian Statistical Institute professor Abhirup Sarkar, who is a noted economist, would head the pay panel, official sources said. …

  • Rationalisation of tax exemptions, rebates to reduce litigation: Sinha

    New Delhi, Nov 28 (IANS) The central government is planning to rationalise tax rebates and exemptions to industry so as to make the taxation structure non-adverserial and rent seeking, union Minister of State for Finance Jayant Sinha said on Friday. Speaking at the 110th annual session of PHD Chamber of Commerce and Industry here, he said the government's proposal to do away with some tax exemptions and rebates is targeted to reduce litigation and discretion. Expressing his hope that the …

  • Chai over GST passage boosts equity markets

    Mumbai, Nov 28 (IANS) Political brinkmanship to get a key economic legislation passed in the ongoing winter session of parliament buoyed the Indian equity markets during the just concluded weekly trade session. Though short-coverings triggered by derivatives expiry and increased chances of a stimulus in European Union (EU) played a part in boosting the equity markets, it was the ongoing political soap opera that had investors' hooked. The barometer 30-scrip sensitive index (S&P Sensex) of the …


  • IIM Ahmedabad is the best B-school in 2015

    The 54-year-old institute is not only drawing on its traditional strengths, but is also taking wings to meet the demands of the emerging new world of business. …

  • Change is only constant at these four B-schools

    It is the best of times for B-school students. And if they happen to be at the top four schools after IIM-Ahmedabad - IIM Calcutta, XLRI, SP Jain Institute of Management & Research and MDI- it is certainly ... …

  • India's best management schools for 2015

    The eagerly-awaited issue of Business Today is here. Find out which B-school has topped the list this time. …

  • Built To Last

    Six lesser-known infrastructure companies have prospered despite adverse economic circumstances. …

  • Sweeten your e-Deals

    Shopping online this festive season can be fun if you read the fine print carefully. …

  • Exercise Caution

    The IPO market is buoyant with a healthy line-up of issues, but investors should be cautious. …

  • No Headline

    Six lesser-known infrastructure companies have prospered despite adverse economic circumstances. …


  • 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