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Parekh, Sharma to depose before JPC

BS Economy Bureau

The representatives of the Unit Trust of India and brokers Ketan Parekh and Shankar Sharma will be deposing in the next few days before the joint parliamentary committee probing the stock market scam.

According to sources, the JPC has already completed 125 hours of hearing. "It will start working on the draft report which will be presented to Parliament in the last week of the Budget Session," they said.

The committee will start its hearings on January 3 with broker Ketan Parekh deposing on behalf of his 23 entities. The Securities and Exchange Board of India, in its second interim report, has held Parekh guilty for rigging prices of momentum stocks during January-March 2001.

He allegedly was abetted and aided by Credit Suisse First Boston, Kleinwort Dresdner and Benson, Sebi said in its report.

Shankar Sharma of First Global Group, who was one of the bear operators in the scam, will present evidence on January 4.

He will be followed by representatives of the Madhavpura Mercantile Cooperative Bank on January 7. On January 8, representatives of City Cooperative Bank have been summoned by the JPC.

UTI executives will depose on January 9. On January 11, the committee will hear evidence of the Calcutta Stock Exchange brokers DK Singhania, AK Poddar and H Biyani.

The JPC sources said the committee had originally sent letters to five companies including HFCL, DSQ Software and Zee Telefilms asking them to present themselves before it. However later on, it decided against calling them since it did not have any concrete evidence to suggest that promoters of these companies were involved in the stock price manipulation.

The sources said while the earlier JPC on 1992 stock scam took about 20 months to submit its report, this committee would present its report in 12 months. The committee expects another 75 hours of sittings and discussions in January and February before presenting its report to Parliament.

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