Stock broker Ketan Parekh and eight of his associates today received a crippling blow, when the Supreme Court dismissed their appeals against a Sebi order that banned them from dealing in the securities market for 14 years. Parekh, his cousin Kartik Parekh and others were found guilty of price manipulation in several shares including Zee TV, Himachal Futuristics Communication Ltd, Global Trust Bank and Lupin during 1999-2000.

The other parties involved in the price rigging were Saimangal Investrade, Chat Computers, Panther Fincap and Management, Panther Investrade, Luminant Investment Ltd, Classic Credit and Classic Infin Ltd. Arguing that the Securities Appellate Tribunal had exonerated other entities and reduced the quantum of punishment, Ketan Parekh alleged that he was being treated unequally compared to other persons and entities such as Credit Suisse First Boston and Dresdner Kleinwort Benson, who were suspended for 2 years and 18 months respectively. Stating that the Sebi decision affected his business and livelihood, he said that the tribunal’s judgement upholding the market regulator’s decision was “grossly disproportionate, excessive and unreasonable”. Parekh had submitted that synchronisation or matching of trade was perfectly legal and permissible in the securities market and the tribunal had also observed that “a synchronised trade or trade that matches off market is per se not illegal”.

Sebi had contended that the stock broker had aided and abetted entities associated with and controlled by him in violation of the provisions of the Sebi (Prohibition of Fraudulent and Unfair Trade Practices relating to the Securities Market) Regulations, 1995.