A special SEBI court has sent former stock broker Ketan Parekh, a key figure in the 2001 securities scam involving the Madhavpura Mercantile Cooperative Bank, to judicial custody for non-appearance in a case filed by the Securities and Exchange Board of India (Sebi).
Sebi is prosecuting Parekh for various offences, including market manipulation. When he appeared before the court on Friday, he was sent to judicial custody by special court judge M G Deshpande. “Parekh was taken into judicial custody as soon as he appeared before the special Sebi court, on the grounds that he had failed to respond to a number of summonses issued against him. His bail plea is likely to be heard on Monday,” a Sebi official said.
Last month, a proclamation was issued against Parekh, asking him to appear before the court in a case regarding non-compliance of Sebi orders. Parekh was accused of indulging in circular trading and was convicted for stock manipulation in 2008.
In 2009, the markets watchdog had banned 26 entities after its investigations found several companies and brokers were trading on Parekh’s behalf. In March 2014, a special CBI court had convicted Parekh for cheating and sentenced him to two years of rigorous imprisonment.