Ketan Parek link: Pantaloon down on manipulation report

Shares of seven companies reportedly named in an Intelligence Bureau report on stock manipulation have declined in early trades.

The stocks that have declined are Dewan Housing Finance Corp (down 7 percent), Goenka Diamond and Jewels (20 percent), Orchid Pharmaceuticals and Chemicals (3.3 percent), IVRCL LTd (3.4 percent), Pantaloon Retail (3.2 percent), GMR Infrastructure (3.6 percent) and Tribhuvandas Bhimji Zaveri (4.9 percent).

A report in Business Today on Saturday said the IB has dug out a major stock market scam, involving Ketan Parekh**,** a broker who was banned by the Securities and Board of India until 2017.

[caption id=“attachment_371798” align=“alignleft” width=“380”]  The Intellegence Bureau report suggests banned broker Ketan Parekh and his associates are driving up share prices through the creation of false volumes[/caption]

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The IB has reportedly submitted to the government a report, in which it has alleged that big players have joined hands with Ketan Parekh to engage in illegal activities “using circular trading, insider trading and use of front entities to rig up prices”.

“The IB document also reveals that the cartels claim to have been in touch with a senior LIC official and some insurance companies to sell the shares to these cash-rich entities. It is intriguing that if the IB has so much evidence against these manipulators, why the SEBI is not actively cutting off their trading lifelines,” the report on the B_usiness Today_ website says.