Parekh still active in stock markets: Intelligence reports

The government has received reports that tainted stock broker Ketan Parekh, barred from the capital markets till 2017 over a securities scam, is still active and has taken positions in oil PSUs like ONGC and HPCL.

Ketan Parekh, who was banned for his role in a securities scam between 1999 and 2001, and his associates are acquiring very large positions in petroleum companies such as ONGC and HPCL, private news channel Headlines Today reported, quoting sources in the Intelligence Bureau.

"They (Parekh and associates) have claimed to close associates that they possess insider information on the government's proposal to decontrol the sale of gas which is expected to raise profit margins of these companies by about 20 per cent," the channel quoted the IB official as saying.

While the channel said that the intelligence reports have been sent to the Prime Minister, the Finance Minister and other senior government functionaries, Parekh could not be contacted over phone, nor his comments could be obtained on e-mailed queries.

It may be recalled that market regulator SEBI had approached the Enforcement Directorate last year, saying Parekh appears to be trading in stocks through certain front entities.

"It appears that he (Parekh) has conveniently used the connected clients at will as front entities for executing trades desired by him in the market," SEBI said.

Ketan Parekh and his companies were banned by SEBI from participating in securities market for masterminding the multi-crore stock scam during 1999-2001.

In 2007, SEBI had barred Parekh and his 10 associates, including brother Kartik Parekh, for 14 years with effect from December 12, 2003.

The news channel further said that one of Parekh's associates is active through front entities in an infrastructure stock  so as to take the price up to Rs 2,000 a share. The share today closed down 3.55 per cent at Rs 1,181.20 on BSE.

Besides, his associates claim to possess insider information about a deal initiated by Piramal Health Care Ltd with Abbott Laboratories, the channel said, quoting a report from the Directorate of Intelligence Bureau.

They have been working on the scrip from March-April 2010 and are planning to buy 1 million shares at Rs 557 a scrip through a front operator, it said.

Parekh is also reported to have made huge profits earlier in the Dish TV scrip and now is again active in it, and companies like Parsvanath Developers Ltd and Tatia Global Ventures Ltd scrips.

The other companies where Parekh is reported to be active are Suzlon, I B Real IndiaBulls Real Estate Ltd, Siemens Ltd, Tata Motors, RNRL, Tarapur Transformers Ltd.

SEBI had banned him after its probe into trading in the shares of Himachal Futuristic Communications Ltd, Zee Telefilms, Adani Exports, Global Tele Systems, Ranbaxy, Shri Adhikari Brothers TV Network, Shonkh Technologies, Padmini Technologies and Aftek between October 1999 to March 2001.