Ketan Parekh, Hiten Dalal, six others convicted in 1992 security scam

Mumbai: The special court set up here to try securities-related cases has convicted stock brokers Ketan Parekh and Hiten Dalal as also six others, including the then top officers of Canbank Financial Services for their role in the 1992 securities scam.

Parkeh, Dalal and Canfina (Canbank Financial Services) officials had entered into a criminal conspiracy to "siphon off Rs47 crore", Justice V M Kanade of the special court (for trial of offences relating to Transactions in Securities Act) held.

The court also held stock brokers S K Jhaveri, Pallav Seth and Navinchandra Parekh; Canfina`s former assistant vice presidents Sainath Mohan and M K Ashok Kumar and former general manager of CBMF B R Acharya guilty of criminal conspiracy and misappropriation of funds.

The accused had transferred money belonging to Canfina to accounts with Canbank Mutual Fund in Mumbai by default, but instead of returning the money to Canfina, CBMF diverted it to the accounts of Parkeh and other stock-brokers, the court held.

The court, however, acquitted former assistant vice president of Canfina N Balsubramaniam, former general manager of CBMF P J Subbarao and B V Shrinivasan of Vysya Bank.

These fraudulent transactions that took place in October 1991 and January 1992, had caused Canfina (a subsidiary of Canara Bank) a total loss of Rs47.7 crore.

The court is likely to pronounce sentences on March 28.