SAT upholds Sebi ban on KP for 14 yrs

Parekh 8212; who was involved in manipulative deals and defaulted on payment to banks 8212; had challenged a December 2003 order by Securities and Exchange Board of India, prohibiting him and seven co-related entities from trading.

The three-member tribunal, headed by sat Justice N.K. Sondhi, observed, 8216;8216;Ketan Parekh had rigged the market in a big way and the penalty imposed on them was quite reasonable having regard to the gravity of the charges proved against them. Hence, we find no ground to reduce the period of debarment and the appeals stand dismissed8217;8217;.

At the same time, SAT also criticised Sebi for letting off lightly the two brokers Credit Suisse First Boston India Securities Pvt Ltd and Dresdner Kleinwort Benson Securities for debarring them for a period of 18 months and two years respectively. 8220;Sebi was not justified in letting off the two brokers lightly by imposing on them a penalty which was clearly disproportionate to the gravity of charges proved against them.8221;