New names crop up in stock market manipulation, pointing to rampant rigging
A new bunch of equity market manipulators has been rigging and twisting stock prices at will, according to reports by the Intelligence Bureau
 
The 2002 securities scam masterminded by Ketan Parekh brought to light widespread manipulation in share prices. It left indelible footprints across the market landscape, and it appears that a fresh wave of 'market makers' has emerged from that episode, who are fashioning new ways and means to contort share prices, sometimes at the behest of company promoters themselves.
 
The government's own intelligence wing is maintaining remarkable vigilance on their activities; yet many of them have escaped the 'long' arm of the law. As Moneylife has reported earlier, the Intelligence Bureau (IB) appears to have kept tabs on the market activities of several individuals and has been preparing regular reports on this.
 
It is already known that barred stock broker Ketan Parekh and several of his associates remain active in the marketplace through various front entities. But less known are several other names that have cropped up in the meantime, who have been found to have colluded with various company promoters to influence the prices of their shares.
 
According to an IB report, Vinod Rathod, a Mumbai-based market manipulator, had fashioned a plan to acquire floating shares of Ruchi Soya Industries from the open market through "manipulative means", a few months ago. In conjunction with the promoters of the company, Mr Rathod "would engineer a fall in the share price, pick up a sizable chunk in the names of various front entities, take the price back up to Rs500 levels and then dispose off 26% stake to a strategic investor." The share price of Ruchi Soya was at about Rs110 in the first week of July 2010.
 
Mr Rathod together with one Syed Zafar was also allegedly planning to manipulate the Hindalco Industries scrip, the IB report says. The proposed plan included fund flows from the promoter to 'operate' the scrip. In lieu of 'services' rendered, Mr Rathod was planning to gift a Mercedes car to Mr Zafar, by initially transferring it to one Gagan Gupta in Delhi and later showing a sale to Zafar in Mumbai.
 
Further, at the behest of the promoters of Karuturi Global, he was planning to stock up shares, orchestrating a hike in prices from around Rs13 to Rs35 and then place the shares with other market operators, including the well-known South Indian industrialist Shiv Shankaran. It has also been found that Mr Rathod was also planning to operate the counter of IRB Infrastructure Developers with insider information.
 
Meanwhile, the IB has alleged that Mr Rathod was also active on the counter of Hanung Toys and Textiles and that he had "advised the promoter to advance the scheduled announcement of dividend from the third-fourth week of July to an earlier date, so as to facilitate placement with institutional investors." Part of the plan also included hiking up the share price to around Rs270-Rs275. The share price of Hanung Toys was in the price band of Rs250-Rs260 in the first week of July 2010. Mr Rathod has also been named as being active in JVL Agro Industries.
 
Manish Marwah is another name that features prominently in the IB reports. In August, Mr Marwah allegedly orchestrated arrangements with two Chandigarh-based companies, Ind Swift Laboratories and Surya Pharmaceuticals. Subsequently, Mr Marwah picked-up stakes in these companies through front entities of his associates, including Praveen Gupta and Ashok Kumar, both based in Delhi.
 
Mr Marwah also struck a deal with the promoters of Symphony and subsequently, Ashok Kumar was directed to start accumulating shares without hiking up the share price, the IB report says. Mr Marwah continued to be active on the counter of Marksans Pharmaceuticals, possibly using an entity called Leapfrog.
 
Another name identified by the IB for alleged shenanigans in the stock market is Raju Bartar. In August, Mr Bartar is said to have identified two foreign institutional investors (FIIs) for a qualified institutional placement (QIP) in Adserve, with the understanding that the promoter would return the amount to Mr Bartar and that the proceeds from the sale of shares would be shared on a 50-50 basis. Subsequently, around 20 lakh applications for the QIP were made through an FII by the name of Sparrow.
 
Mr Bartar also explored possibilities to influence the recent initial public offer of Gravita India. The IB also mentions that one of the promoters of Kiri Dyes had tasked Mr Bartar to hike up the share price from around Rs565 to above Rs600.
 
These are just some of the names that seem to be playing with share prices at will. While some of them, like Mr Marwah, have been booked by the market regulator, the Securities and Exchange Board of India (SEBI), many others still roam freely in the stock market jungle.
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    COMMENTS

    CITIZENINDIA

    9 years ago

    sometimes , such acts present great opportunities to make money in stock markets. For instance say i know of a few companies whose share price can be easily manipluated because of poor float. i know that the companies are intrinsically much more valuable and hence hold on . i also know that some big guys are keen on entering the stock.
    what i also notice is block deals , stock falling on pathetic delivery volumes . and if i match it with shareholding pattern , i observe that the big shareholders have all mantained status quo. if i juxtapose all data , i then know that the stock price on the screen is being manipulated so every time the stock corrects , it presents an opportunity for me to maybe add. there are many give aways if one has been in the market long enough. if there is clarity on the business model, i think the other things can generally be comprehended.
    an investor should assume that in the market he is all by himself. the company laws favour the promoter and the promoter is always hungry for funds. even the biggest blue chips can resort to poor governance in bad times.
    it will become tougher and tougher to successfully manipulate stock prices as too many people have already burnt their fingers and learnt it the hard way and hence the decreasing particiaption of retail . 80% of ipos today are scams, of the promoter by the promoter. people like anil ambani and mallya are the most likely scamsters as they are in deep trouble and desperately looking for equity. the warrant misuse by groups like AV birla during 2008 shows that they are all the same. difference is of degrees. if murder was legalised in this counrty , then they dont mind doing it. warrant issues i think was mis used largely. but legally such actions cant be challenged. after all they are all in a race for the indian of the year award , taking india to the world and forbes list!

    saee

    9 years ago

    Main stream media is hiding these facts. I suspect the insiders are selling first, and when there selling is absorbed by the market, then the main stream media will highlight the viciousness and create panic in the market. It is for better for individual investors to sell and move out on cash.

    ramesh

    9 years ago

    These market manipulators are helping retail investors to make money. Only problem is that retail investors not smart enough to make use of that :)

    M.C.Aggarwal

    9 years ago

    These speculators are nothing but
    rakshas of kalyug

    ram

    9 years ago

    So it is quite obvious that all the stocks in market are manipulated from erstwhile infosys to karutri global.

    REPLY

    manoj

    In Reply to ram 9 years ago

    It looks like you are trying to advocate for what is all going on as like all Saints and Sadhus working day and nite for welfare of poor retail investor-so that these poor guys can become rich out of stock market(Satta market or whole sale global casino market which is legalised by most of govts around the world-thats why so many scams surfacing every month-people like you defend this because may be you are one part of these manipulators) and you don"t criticise these outcomes which are known to most people who have suffered huge losses due to manipulators.

    santhana

    9 years ago

    When there is rampant speculation and rigging of stock prices SEBI had been found wanting. They want financial independence and does not want their surplus to be added to the consolidated fund of India, which is where it truely belongs. Actually SEBI should not have any surplus!! why they want to control their finances when they are unable to control the rigging of the market. May be they too want to play the market. With all the insider info they can certainly play it well. They do catch a few manipulators to make a show that they are doing their job. But the real Big Sharks are free to do what they please.

    Narendra Doshi

    9 years ago

    Would appreciate your response to Mr. Manoj's email.

    NAVIN G BISSA

    9 years ago

    This means this stock mkt jungle is full of hundreds of ketan parekhs,every such operator is in a great hurry to make crores,and all the stock market fertinity is available for such types of manipulaters by making mockery of the system.

    Manoj

    9 years ago

    In this story, Symphony Ltd has been named as one of the stock where Marwah was active. It was Moneylife (Debashis Basu & Sanket Dhanorkar) that had recommended buying Symphony Ltd in its 30 Sep 10 cover story. See the link below.

    http://www.moneylife.in/article/9342.htm...

    Will Moneylife clarify whether that recommendation still holds after this disclosure?

    REPLY

    SANarayan

    In Reply to Manoj 9 years ago

    Similarly Surya Pharma was also recommended. What now?

    Debashis Basu

    In Reply to SANarayan 9 years ago

    1. The IB report mentions a host of names of stocks and speculators. Only in some stocks was there a nexus between speculators and the company management. For instance, KP was active in many stocks including BPCL and HPCL. Surely, there was no nexus between the company and KP. In short, just because a speculator was active in a stock does not necessarily make the company untouchable.
    2. Having said all that we can always go wrong not only about the future performance of a stock but also about the quality of management.
    3. This is precisely why we have a well-defined and a mechanical stop loss and stop profit strategy that is published in every issue.
    4. The stop on Surya got triggered sometime ago, the Symphony stock is still strong

    Deepak K Rao

    9 years ago

    Those entrapped by the herd instinct are drowned in the deluges of history. But there are always the few who observe, reason, and take precautions, and thus escape the flood.
    "Anthony C. Sutton"
    The idea that any single individual without extra information or extra market power can beat the market is extraordinarily unlikely. Yet the market is full of people who think they can do it.
    "Daniel Kahneman


    Sanjay Dangi, another barred market manipulator, still pulling strings

    The market regulator SEBI recently banned Sanjay Dangi for colluding with promoters of four companies to influence share prices; however, Intelligence Bureau reports suggest that his involvement stretches way beyond these four firms

    Last week, the market watchdog, Securities and Exchange Board of India (SEBI) had issued an order against Sanjay Dangi, a Mumbai-based high net-worth individual, barring him from dealing in the equity markets. Initial investigations by the Income Tax Department and further findings of SEBI confirmed that Mr Dangi had colluded with promoters of four companies, namely, Murli Industries, Ackruti City, Welspun Corp and Brushman India, to artificially jack up these scrips through dummy companies connected to the promoters or Mr Dangi himself.

    According to regular reports by the Intelligence Bureau (IB), which has been keeping tabs of Mr Dangi's market activity, he has been active in several other companies as well. These reports, available with Moneylife suggest that Mr Dangi, together with Viren Ahuja, a Mumbai-based business man "was planning to take the share price of Core Projects to around Rs350". After securing F&O trading rights from 25 June 2010, Mr Dangi, with a view to hiking up the share price had suggested that the promoters convert their holdings in cash into the F&O. The IB found that the share price of Core Projects had increased steadily from around Rs195 in the beginning of June 2010 to close to Rs250 by the end of the month. This raises questions about how stock exchanges select stocks for inclusion in the derivatives segment.

    At the same time, the IB also found that "Dangi in conjunction with Anand Rathi, were working to hike up the share price of Ackruti City to Rs 700. In this connection,Dangi was willing to buy shares worth Rs 25 crore. Dangi and Rathi were also planning to operate the Gokul Refoils & Solvent counter by cornering around 40 lakh shares in the open market and hike the share price to around Rs120-125 and eventually into the F&O segment." It further revealed that Mr Dangi, along with one Akash Bhansali of Enam Securities and the promoter of Welspun Gujarat Stahl Rohren was proposing to purchase 5-10 million shares, so as to push up the share price.

    During August, it was found that Mr Dangi continued to collude with BK Goenka, promoter of Welspun Corporation, with the objective of manipulating the share price towards Rs400 by November 2010. Mr Bhansali and the Janus Capital group were also roped in to buy in a sustained manner. Janus was to buy 2.5 million shares at around Rs260. The cartel expected that a sustained rise in prices would attract buying from LIC which would then take the scrip to much higher levels.

    But this was merely the tip of the iceberg. Mr Dangi was also active in the Prakash Steelage stock, selling 1.3 million shares at Rs225 through Edelweiss Capital. Of the total sale, the report says, 0.8 million shares were from the account of one Pawan Bansal. Earlier, Mr Dangi and his associates had accumulated large quantities of the scrip through various entities, including Pacific Corporate Services. After booking profits, Mr Dangi was involved in heavy selling of this counter.

    Further, Mr Dangi, in collusion with the promoters, was also involved in the counter of Amar Remedies and was responsible for raising the price of the share to Rs102 as on 23 August 2010. Subsequently, Mr Dangi was scheduled to go to the UK to organise an FCCB issue at a stock price of Rs150. In another counter, Sahyadri Industries, Mr Dangi had bought a 20% stake out of which 14% was in his own company's name (Pacific Corporate Service), while 6% was in the name of his associates. In consultation with the promoters, Dangi directed his associates to buy the scrip taking the price up to Rs195 and beyond. Meanwhile, Mr Dangi continued to be active on the stocks of Core Projects and Technologies, Orchid Chemicals and Pharmaceuticals and Panasonic Home Appliances India Company.

    In September, says the IB report, Mr Dangi was accumulating to hike the price of shares of Welspun Corporation with the objective of placing it with institutional investors. In co-ordination with the promoters, Mr Dangi purchased 9 lakh shares from India Fund at Rs263.80 per share in the books of its front entity, Pacific Corporate Services. The bulk buying was an effort to prevent the fall in the price of the scrip. Further, in respect of Gokul Refoils & Solvent, Mr Dangi was instrumental in raising the share price to Rs130, then allowing it to cool down to Rs 100. This was as per the laid-out plan for manipulation, which involved the placement of 40 lakh shares with domestic institutional investors at Rs100.

    Meanwhile, Mr Dangi, at the behest of the promoter, attempted to pick up all floating stock from the market in respect of J Kumar Infraprojects (JKIL) and then placed the scrip with institutions. About 75,000 shares were also transferred from the promoters' account to Mr Dangi's account, with the further prospect of three lakh shares being exchanged on 23 and 24 September 2010. Mr Dangi was also in contact with Anand Rathi in this context. Bulk deals in JKIL on 22 September featured Pacific Corporate Services and Cello Finance Corporation, linked to Pradeep Rathod. Mr Dangi was also active on the counter of Parekh Aluminex in which the promoter wanted the share price to rise to Rs1,000. Mr Dangi held around 10% of Aluminex.

    It was also found that Mr Dangi, along with Anand Rathi and Pradeep Rathod, in conjunction with the promoters, proposed to operate the Ackruti City scrip. The game-plan included raising the price of the scrip to around Rs700 for placement with fund managers.

    While the IB reports blandly reproduce such explosive and eye-popping information, complete with the names of top institutions, it is not clear if any of these details are being investigated by SEBI.

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    COMMENTS

    nagesh kini

    7 years ago

    What preventive steps contemplated by SEBI? Locking the stable after the horse bolted?

    nagesh kini

    7 years ago

    What preventive steps contemplated by SEBI? Locking the stable after the horse bolted?

    hemant

    7 years ago

    Awesome Job.Eye-popping manipulation in stock market.Hats off to superb investigative journalism from Sucheta Dalal and Moneylife team. Will wait to read more skeletons coming out in the ensuing days.
    Keep up the fantastic job!

    citizenindia

    9 years ago

    There are scams in 80% of IPOs, non performing loans to aviation and real estate sector is being downplayed, restructuring of loans , BIFR, evergreening of loans by banks as in the case of ispat as pointed out by moneylife itself, these are all scams . big groups like junior ambani and mallya are in deep trouble, big fund managers are busy giving investor money to fund the ambitions of these paper tycoons, its all happening in front of our eyes. the biggest guys are being accomodated by LIC. promoters have understood that there is more money to be made in the stock market than in their own businesses. So if an AV birla tries to take his group and the country to the world and gets the timing wrong, no problem, just allot a few warrants and low prices and increase your holding at pathetic prices, come on tv projecting yourself as rescuer to your rights issue, restructure your cement busines and you would have recovered the losses! and trust cnbc to give you an award too. want to be a billionaire overnight? get scare resources like spectrum or some mine or land alltoments from your politco friends, pledge the same with the bank and get a loan sanctioned, go to a fund manager and ask him to infuse some equity or merchant banker asking for IPO by giving him a cool fees , get cnbc or ET to do an interview, take more loans and add more equity and continue the loan equity juggernaut and in a few years you can be anil agarwal, the tycoon who created jobs for indians! sometimes these are opportunities though. For instance in the case of welspun, i think as far as their business model is concerned , they are leaders in their respective sector . their balance sheet i dont think is cooked. during their CDR and capital reduction, they managed to wipe out their past sins at the cost of their creditors and shareholders, trying to get to place your shares at high price is something shareholders like me love! and nobody remembers thse things after few years. people still buy himachal! they still buy rolta! and when did banning a person from trading in markets ever stop them from trading!as if all trades are done only personally. The system will change slowly and we as investors too need to look for warning signs. Companies like austral coke and resurgere are allowed to come with ipos! ganesh jewelry , etc etc etc emaar is trying , sahara , HCC , all real estate guys , aviation guys , they all have their eyes on your money and mine. beware

    Guest

    9 years ago

    Some of the company has appreaed in all the SCAM like welpsun - Income Tax Raid -delacred 600 Cr . LIC SCAM - Share to LIC commission given to Money Matters . Price Rigging for FCCB issue and shares to Institutions .

    Investors are fool . and Comapny will get awards and rewards from Govt .

    sanjeevreddy

    9 years ago

    GOOD

    Santhana

    9 years ago

    Mr. Bhave has announced that investors need not worry. see attached link.
    http://www.thehindubusinessline.com/2010...
    Is he in this world or any other? If he had lost his money would he be so cool and say these useful words?

    investor

    9 years ago

    can someone explain Edserve wild swings

    NAVIN G BISSA

    9 years ago

    Is this new to this market!!?.This is the way how these all things takes place.See after all this is a stock-trade..satta bazar.This all proves that the so called smart operators are making money and small investors (as usual) are paying for it.Either these operators keep eye on MF money or Big institution's..like lic and uti's fund(which is actually of common small investors).If possible please check the case of core projects for last three years.Many more shoking things will come out.How these shares get in and out of F&O,who changes the ckt limits frequently for these type of shares..and good many things!!!.So this is the true picture of eratic price movement in the stocks,

    Santhana

    9 years ago

    Satta game is more safe than Indian stock market thanks to SEBI, NSE and the other national financial instituitions. SEBI is doing a great job promoting these game players for the financial inclusion of the masses. The poor public had been denied the advice and services of the IFAs by banning their commission. what a game plan!! worthy story for a movie. who will play the lead role? Bhave, Ketan Parekh or Bahnsali. All are fit candidates.

    REPLY

    manoj

    In Reply to Santhana 9 years ago

    The SCAM of SEBI and its officers is of much bigger scale then 2G scam,because in this satta bazar their is daily SCAM of 2 lac crore daily(going up or going down with just up/down of 300-400 points in sensex,all stocks moving one day upward and falling next day(is this fundamental investment or Satta game)-i must agree that even Satta is better regulated though it is illegal,so if SEBI and its officers are raided by CBI or a public interest litigation is lodged against doings of SEBI,i am sure a whole grave yard of SKELETONS will come out surely-so why CBI is waiting?why IT deptt is waiting?if IT deptt wants a big chunk-it should raid these people who have played with savings of retail investors in nexus with operators and promoters.

    sreepathi

    9 years ago

    Whether Anand Rathi as mentioned in the article and Anand rathi securities promoter one and same ?

    SUBHASH MEHTA

    9 years ago

    Correction:
    Sorry. I wanted to say that "All the persons named in this article as well as all others charged for induldging in manipulation of share prices, should not by called by Business Channels of Television, as so called 'Experts'.......

    All such persons should be Blacklisted by the Media, in the interest of retail investors.

    REPLY

    INVESTOR

    In Reply to SUBHASH MEHTA 9 years ago

    Media equally guilty . Barter deals, NDTV Guardian spat , tapes . How will media cos be unbiased when some are like stock operators themselves?

    guest

    In Reply to INVESTOR 9 years ago

    We will forget all promoter would be multi billionior and Govt Manmohan sigh will give them Awards . Ref ( welspun best emerging corp Award )

    rahul

    In Reply to guest 9 years ago

    if u all dont know any thg plz dont comment bullshit.....................


    Nobuddy had made a loss from these investor.....who r banned

    SUBHASH MEHTA

    In Reply to INVESTOR 9 years ago

    I think that SEBI can also start registration of the experts by taking some fee and fix some ethics for them, as done for Stock Brokers, Sub-Brokers, Mutual Fund Distributors etc. Duly registered experts can only be speak on television, write articles in print media, internet etc.

    SUBHASH MEHTA

    9 years ago

    All the persons named in this article as well as oll others charged for induldging in manipulation of share prices, should be called by Business Channels, as so called 'Experts'. Financial Magazines and Newspapers should also stopped publication of their articles. Mr. Anand Rathi and some others are often seen in TV Channels, recommended buying in stocks, being manipulated by their broking firms and their other channels.

    REPLY

    Ravindra Shetye

    In Reply to SUBHASH MEHTA 9 years ago

    Too much to expect from our channels who themselves have no ethics whatsoever. They have a one point agenda 'TRP'.

    SUBHASH MEHTA

    In Reply to Ravindra Shetye 9 years ago

    Yes. Media has no ethics. Earlier there was no ethics in the market. At least market regulator SEBI had brought financial markets under some regulations and ethics (which may not be insufficient as per present situation) for stock-brokers, sub-brokers, Mutual Funds Distributors etc.. My suggestion has been mentioned as a reply to 'Investor' in this debate.

    Nagesh KiniFCA

    9 years ago

    when such manipulators are operating with impunity and playing about with listed shares as if they are small change jacking up and pulling down equity prices why doesn't SEBI which is supposedly a Regulator step in to discharge its duties and put an end to such blatant malpractices by nipping them in the bud and preventing the small investor falling a victim to fraudulent market manipulations?

    Narendra Doshi

    9 years ago

    Could you please confirm if ANY of these stocks ever came under research/recommendation at MONEYLIFE, at ANY point of time ?
    One needs to REMEMBER that such a thing CAN HAPPEN to practically ANY stock & hence LEARN TO ACTUALLY be DOUBLY cautious while considering buying them.
    Kudos to Mr. Sanket for this FACTUAL info so early.

    REPLY

    SANarayan

    In Reply to Narendra Doshi 9 years ago

    Murli Industries was one of the reommended stocks.BW5NE

    Intelligence Bureau tracks active deals of Ketan Parekh; tells finance ministry. Why is SEBI inactive?

    Ketan Parekh is trading in dozens of stocks, according monthly intelligence reports. Top ministry officials have been getting these reports regularly. But why are they sitting idly, and why is SEBI keeping mum?

    Ketan Parekh has been banned from trading in securities from December 2003 till 2017, but by all accounts Mr Parekh has been very active in the market all these years.

    Most amazingly, the government's own intelligence wing is regularly tracking his trades and sending the reports to senior-most government officials. These reports are drawn up every month and sent to SS Menon, national security advisor; TKA Nair, principal secretary to the prime minister; KM Chandrashekhar, cabinet secretary; GK Pillai, secretary, ministry of home affairs; and Ashok Chawla, secretary, finance ministry.

    Strangely, there has been no regulatory action against Mr Parekh so far, even after his involvement has been widely reported by the media. This raises the question, why top officials of this country who have enormous powers to investigate and harass small businesses and even tax-payers who are senior citizens, are so benign about Mr Parekh's illegal trading even when they are being briefed every month about his enormous purchases and sales?

    Another equally important question is whether the market regulator, Securities and Exchange Board of India (SEBI) knows about these activities? Moneylife asked SEBI whether it has been briefed about Mr Parekh's activities, but has not received any reply so far. It would be stunning indeed if all the top officials and the regulator maintain a don't-hear-evil-don't-see-evil attitude, even as they sermonise about what is ethical and moral on various issues in the securities market.

    We learn from Intelligence Bureau sources that their monthly briefing reports routinely reach the regulators in some form. The intelligence reports a few months ago documented that "using various front entities" Mr Parekh was active in Orchid Chemicals, GMR Infrastructure, Cairn India, Deccan Chronicle, Reliance Industries, Punj Lloyd, India Bulls Real Estate, Pipavav Shipyard, MVL, Amtek Auto, Hindustan Oil Exploration Company, Camson Biotechnologies, Crew Bos Products, UCO Bank, East India Hotels, State Bank of India, OCL India, Kemrock Industries, Tatia Global Ventures and JSW Steel. Further, KP has apparently "sold his holdings in HPCL and BPCL" in August.

    Interestingly, Mr Parekh was also supposedly active in SKS Microfinance, "having taken up the share price from Rs850 to around Rs1,100." The report also adds that "KP using his Kolkata-based associate, Ashok Poddar, held a big position (5-6 lakh shares) in Parsvanath Developers. The report also informs the top government officials that "associates of Mr Parekh, such as Dinesh Singhania and Raj Aggarwal, contemplated modalities for IPOs, wherein cartel members would secure 50% of IPO proceeds from promoters of unknown or fringe companies. In this context, the IPO of Aster Silicates was discussed." Apparently, Mr Parekh is using a Chennai-based broking firm, Shri Ram Insight Share Brokers for his trading.

    According to the reports, associates of Mr Parekh were involved in manipulating the Microsec IPO, both in its pre- and post-listing stages. "The gameplan included pre-listing short selling at Rs36 in the grey market, multiple retail and HNI applications through proxies, benami demat accounts and instant selling of the allotment on the day of listing to keep the price below Rs34 levels. Anticipating panic-selling by regular shareholders, the cartel members proposed to mop up shares and subsequently orchestrate a sustained hike through circular trading. Further, the cartel was also involved in the IPO grey market relating to Eros International Media, VA Tech Wabag and Carrier Point Infosystems."

    A few months ago, Mr Parekh also planned to buy 60 million shares of Amtek Auto, alternately on the National Stock Exchange and the Bombay Stock Exchange. In June, the intelligence sleuths found Mr Parekh active on the counters of Dish TV, Piramal Healthcare, Pipavav Shipyard and Housing Development Finance Corporation.

    Interestingly, Mr Parekh and his associates "were involved in market operations to raise funds in Temptation Foods. The plan included a cash transfer of Rs3.5 crore from one associate (DS) to another (GM) in return for which, GM was to issue a cheque worth one crore to Temptation Foods as application money for 14 lakh shares. While the normal preferential allotment of 14 lakh shares was to be at Rs36 per share, these were to be given at Rs30 per share to GM. Subsequently, KP and associates planned to hike up the shares of Temptation Foods, with the understanding that they would receive 50% of the profit. In the event of a loss, the promoter was expected to make good the losses by providing cash to GM through DS."

    It may be recalled that Vinit Kumar, the present owner of Temptation Foods, was recently identified as being an ally of home ministry official Ravi Inder Singh, who was arrested for leaking out sensitive information to companies, and which also led to further revelations in the telecom scam. Vinit Kumar is said to have played a big role in the scandal. According to a report in the Mumbai Mirror, Mr Kumar was the go-between who would take information from Mr Singh to corporate houses, and in return give him cash and supply him with prostitutes. He is widely suspected to have strong links with Mr Parekh, the Mumbai Mirror report says.

    When the Intelligence Bureau reports about Mr Parekh's activities are so detailed, the regulator's inability to check his market manipulation can only be deliberate. - Additional research by Sanket Dhanorkar

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    COMMENTS

    MUNNA JINDAL

    9 years ago

    NO MORAL IN INDIA ALONG WITH SEBI , NSE, BSE & ALL SENIOR EXECUTIVES.
    SMALL INVESTORS ARE SUFFERING DUE TO THIS.

    Salam

    9 years ago

    nice events. congrates...


    Rgds,
    Salam

    Tushar Choksi

    9 years ago

    SEBI is big by name and small by action.Now one wonders if intelligence agencies were tracking this market maniuplation in stocks what sebi was doing?Its clear that sebi is in the eye of suspicion but the top officials have always got away inspite of colluding with market operators.Its a sorry state of affairs that so called messiah of small investor Mr. Bhave is doing all the wrong things.One can only pray that if government agencies cant punish the culprits ,god will.

    Biju Pandey

    9 years ago

    What about Axis Bank ? Do you think it went up on the basis of its fundamentals........ sorry please check out the insider story with the employees.

    The main aim of taking over ENAM is to show inflated fee income and to present the rosy picture to investors.

    Employees are unhappy with the new management and putting the papers and the bank is not relieving them and creating unnecessary hurdles and harassment, which is against the labour laws and human right

    Right time to exit or you will see one more Satyam and GTB.



    r rajan

    9 years ago

    the named operators hv not only booked profits on long positions but R short on the market.It is the unsuspecting small speculators that R taken to the laundry.Many F O cos.with good mgts R quoting @ P/E ratios of 3-5.e.g.3 i Info,FSL etc.While the DII s R supporting Infy,TCS etc @ P/E ratios of 30 + small speculators R getting butchered in fundamentally sound midcaps.



    SUBHASH MEHTA

    9 years ago

    After all SEBI is a body of 'poor' govt. officers/officials. Some of them may need money for not taking actions on some petty items like this.

    somesh

    9 years ago

    SEBI hardly has nay good investigating officers under its wings, only a bunch of fat salary eating officers with no experience in investigation calling thmselves regulators and landing at the plum post of SEBI with blessings of their Godfathers with hardly any core competence. You cannot exopect any investigation worth its slat from these people.

    saraf

    9 years ago

    Please let CBI investigate other scams and appoint CVC , vigilance and police(cb-cid) to look after sebi issues (with free hand no person to invene) specially on movements of Top Officials, including Directors, WTM(Whole time members), Ed, CGM,DGM etc.

    sana

    9 years ago

    read

    Saee

    9 years ago

    There is no point in discussing these issues after the even happend.

    Just read the first page of honestadviser.com you will get all answers to this discussions

    Saee

    REPLY

    SUBHASH MEHTA

    In Reply to Saee 9 years ago

    Yes, there is no point to beat the earth after passing of snake. (Saanp nikel jane ke baad lakir pitna theek nahin hai). But I think that there is no tool available through which investor can know before happening.

    Pantulu

    9 years ago

    I have been regularly commenting that the present system helps only manipulators. Common people suffer because they cannot know what these manipulators are upto. The only soiution lies in changing the system by linking share value to the performance of the concerned organization which is not the case at present. The value will go up when the performance improves.Those who want the present system to continue evidently do not like transparency. Change does not suit manipulators .

    girish

    9 years ago

    Can we ask SEBI, before purchasing each and every shares!

    Niraj

    9 years ago

    Do you think that Market is or it should running only on fundamentals? Sensex will be @ 8000 then & all FIIs will fly away fast.

    MITESH SHAH

    9 years ago

    CBI NEEDS TO EVEN INVESTIGATE SEBI'S ACTIVITIES BCOZ SEBI IS BIASED TOWARDS SOME INVESTORS OR MANIPULATORS OR EVEN FUND MANAGERS WHO ARE HAND IN GLOVES WITH ALL THOSE INVOLVED - WHICH COMMON INVESTORS CAN NEVER UNDERSTAND.

    THE NUMBER OF SCAMS WITHIN STOCK MARKETS & OUTSIDE HAVE SUDDENLY COME UP IS IN INFINITY.

    WHERE WILL ALL THIS STOP ONCE & FOR ALL ? & WHO WILL ADDRESS INVESTORS OF MANIPULATED COS. OTHER THEN PROMOTERS OF THE CO. BCOZ THEY COME ON T.V. CHANNELS WHICH DOES NOTR SERVE INVESTORS PURPOSE BUT THEIR OWN. SO , I THINK INSTEAD OF CLARIFICATION FROM SEBI , NO PROMOTER OF ANY CO. BE ALLOWED TO ADDRESS INVESTORS UNLESS ITS BEING CLEARED BY SEBI / FM & PM .

    WHY INVESTORS ARE ONLY ALLOWED TO BURN THEIR FINGERS ? WHY PROMOTERS OF SO CALLED MANIPULATED COS. FINED THEIR ENTIRE WEALTH FOR ANY MANIPULATION WITH INVESTORS MONEY ? PLEASE ANSWER THIS. IF THERE IS NO ANSWER TO THIS - INVESTORS WOULD RIGHTLY TAKE THIS AS ORCHESTRETED BY POLITICIANS / PROMOTOTERS & EVEN CAPITAL MARKET REGULATORS - WITHOUT WHOM ALL THIS SYDICATED SCAMS CANNOT SURFACE.

    REPLY

    rajesh

    In Reply to MITESH SHAH 9 years ago

    I fully agree to your point-Mr bhave and his gang members should be inquired by CBI for all their acts and omissions and corrupt practices-if Mr Raja can be raided then why to spare Mr Bhave who should be spared-he is culprit of even more bigger scam because he is in nexus with lot of operators and he is helping FIIs to buy at low cost of good co shares by killing domestic institutions-indian investors have suffered so much due to SEBI actions that he is gulty of so big crime that he should be hanged in public place-

    Chandresh Shah

    9 years ago

    Next in line would be the white collared Fund Managers, who Warehouse the stock & then purchase them in their Fund, the Suresh jajoo is known to have connections & front men of Madhu kela, like they did in stride, or like TV commentatorUdayan Mukherjee of CNBC, who paid a Advance Tax of JUST 6 crs Why haven't these come to the Headlines as yet?????

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