The Securities Appellate Tribunal (SAT) has dismissed appeals filed by broking associates of tainted stock broker Ketan Parekh against a Securities and Exchange Board of India (Sebi) order, which barred them from the capital markets for rigging scrips.SAT, dismissing the appeals by Triumph Securities, N H Securities, Classic Shares & Stock Brokers and Triumph International Finance, upheld the regulator's decision to cancel their certificates of registration.These firms were used by stock broker Ketan Parekh to rig the market, which came to light in March 2001.The broking entities appealed against the order passed in 2004 contending that they were separate legal entities and could not be associated with Parekh and his investment companies.In separate pronouncements on May 4, SAT's two-member bench headed by Presiding Officer Justice N K Sodhi dismissed the appeals by these six entities.Appeals by V N Parekh Securities and K N Parekh Securities, which hadn't been found guilty, were also dismissed as there was a possibility that the two entities associated with Parekh could be used in the future for such manipulations, SAT said.In the case of Triumph Securities, SAT found very close business relations with Parekh through his wife and his brother's wife who held 15.84% stake in the company.Also, the entities had indulged in synchronised trading without change of beneficial ownership and without intending to trade which SAT held as non-genuine, fictitious and circular in nature.
