Custodian to move Special Court to find out source of Ketan Parekh's money
June 10, 2009
The Office of the Custodian, set up after the 1992 securities scam under the Special Court Act, has decided to move to Special Court in order to find out the source of Ketan Parekh and his associates money.
According to sources close to the developments, the Custodian will file the petition on 11th June, in the Special Court of Justice V M Kanade (For Trial of Offences Relating to Transactions in Securities Act) to penetrate the suspected entities entities used by Ketan Parekh.
The Custodian was not immediately available for comments.
Last week market regulator, SEBI has barred a few entities and people from transacting in stocks for allegedly routing Parekh's money into the stock market and rigging prices of five companies. In 2003, the regulator had barred Parekh from transacting in shares for 14 years, for his involvement in the stock market crash of 2001.
"The observations emerging from Income-Tax department investigations into the fund flows of Parekh reveal that many of the connected clients (barred entities and people) were acting as conduits for routing of Parekh's funds," Sebi’s whole-time member KM Abraham, said in an interim order.
Earlier in April, the Special Court sentenced Ketan Parekh, Hiten Dalal and five others to one-year rigorous imprisonment in connection with a transaction in the 1992 stock scam, involving Canbank Financial Services Ltd, a unit of Canara Bank.