IB report claims Ketan Parekh manipulating stocks

09 Jul 2012

A major stock market scam involving big players such as tainted stockbroker Ketan Parekh (KP), who had been banned from trading on the bourses till 2017 by securities market regulator SEBI has been exposed by Intelligence Bureau (IB), a report in India Today reports.

The India Today report goes on to add that the IB report, submitted to top officials of the government, suggests that Parekh and his associates were driving up share prices through the creation of false volumes.

According to the IB report, companies like Dewan Housing, Goenka Diamond, Orchid Chemical, IVRCL, Pantaloon, TBZ IPO and GMR Infra were targeted by KP and associates.

Goenka Diamond and Jewels scaled to a high of Rs191.35 and an intraday low of Rs161.65 and in early hours of trading today, the share was quoting at Rs161.65, down Rs 40.40, or 20 per cent. Sell orders pending totaled 42,758 shares, with no buyers available.

Dewan Housing Finance Corporation surged to an intra day high of Rs177.40 and an intraday low of Rs169.20, and in early trade today the share was quoting at Rs173.00, down Rs9.90, or 5.41 per cent.

GMR Infrastructure rose to an intra day high of Rs26.00 and an intraday low of Rs 25.10 and in morning trade it was quoting at Rs 25.20, down Re 1, or 3.82 per cent.