With the Company Law Board rejection both the applications filed by Ketan Parekh group of companies on the stock market scam of 2001, decks may have been cleared for the government to begin a probe into these 16 companies, sources said.

The management of Ketan Parekh group of companies had filed two applications before the Company Law Board. One asked for transfer of cases to CLB Mumbai since the group's registered offices are there.

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The other application wanted to obtain a copy of the much-publicised report by Securities and Exchange Board of India on the stock market scam.

In its order on Thursday, the Principal Bench of CLB comprising chairman S Balasubramaniam and member K C Ganjwal ruled against both the applications and said hearing on the case -- whether to allow DCA to probe these entities -- would proceed soon.

The Department of Company Affairs had referred the Ketan Parekh companies to CLB, seeking permission to proceed with a probe against these firms under section 237 of the Companies Act.

The probe will examine whether these firms committed frauds during the scam or for instances of mismanagement, misappropriation of funds and heating up the secondary market for speculative purposes.

The companies under question include NH Securities, Triumph International Finance, Classic Share & Stock Broking, KNP Securities, V N Parekh Securities, Panther Fincap Management, Panther Investrade, Saimangal Investrade, Classic Credit and Panther Indutrial Products.

Chitrakoot Computers, Luminant Investment, Triumph Securities and Manmandir Estate Development are also involved in this case.