Search the Internet          Tips  Sites: Finance, Investment

JPC summons promoters of K-10 companies

BS Banking Bureau

The Joint Parliamentary Committee probing the recent stock market scam has called the promoters of all ten companies which were Ketan Parekh's favourite picks.

While some of the promoters have been summoned in the first week of January 2002, others will appear before the JPC in the later part of the month.

JPC sources said the committee is also likely to meet other companies which had witnessed sharp fluctuations in their share prices immediately after the Budget. The JPC is slated to meet on January 3.

Top sources said the JPC has decided to get to the bottom of persistent reports suggesting that Ketan Parekh was back in the market. Stocks said to have been favoured by him are making waves, both in terms of price gains and traded volumes on the exchanges.

This is for the first time that the JPC is calling the promoters directly. JPC has so far heard the regulators (Securities and Exchange Board of India, Reserve Bank of India), stock exchange officials and officials of the Unit Trust of India.

Both Ketan Parekh and former UTI chairman PS Subramanyam are also slated to appear for hearing before the JPC in this round.

The K-10 scrips include Silverline Technologies, Himachal Futuristic, SSI, Pentamedia Graphics, Global Telesystems, DSQ Technologies, Ranbaxy, Aftek Infosys, Global Trust Bank and Zee Telefilms.

The combined volumes of the K-10 scrips accounted for 40 per cent of the total traded volumes on the Bombay Stock Exchange and the National Stock Exchange in the last two months.

These scrips have outperformed the stock market by a whopping 350 per cent in the last two months.

Sebi has also taken note of reports that KP is active in the stock market and had asked the stock exchanges to keep a close watch on these stocks.

It has also written to all the leading stock exchanges asking them to furnish details of KP's books of accounts and the accounts of firms associated with him.

It has also sought information from the exchanges as to whether the book of accounts of KP and his group has been inspected in the recent past. This was done after the JPC had raised questions on whether KP's books of accounts were inspected by the exchanges.

Powered by

YOU MAY ALSO WANT TO READ:
The Rediff-Business Standard Special
The Budget 2001-2002 Special
Money
Business News

Tell us what you think of this report