SAT upholds ban on KP, group firms

The Securities Appellate Tribunal (SAT) on Friday turned down the appeal filed by Ketan Parekh (pictured) and Kartik K Parekh and seven of their entities against the two-year-old order by the Securities Exchange Board of India (Sebi) banning them from the market.

"Appellants have rigged the market in a big way and the penalties imposed on them are quite reasonable. Having regard to the gravity of the charges proved, in this view of the matter, we find no ground to reduce the period of debarment (14 years)," the SAT said in its final order.

The Sebi had, in December 2003, debarred nine entities from trading in the market for 14 years after finding their involvement in the 2001 stock market scam.

Both Ketan and Kartik, along with their entities "� Classic Credit, Panther Fincap and Management Services, Luminant Investments, Chitrakut Computers, Saimangal Investrade, Classic Infin and Panther Investrade, had been prohibited from dealing in securities in any manner.

It was done on the basis of the findings of the investigations conducted in the wake of excessive volatility in the stock markets during mid-February and mid-March 2001.

The order was passed on December 12, 2003 after giving them a chairman hearing and it does not preclude action against these individuals and entities in the future.