Market regulator Securities and Exchange Board of India (Sebi) today confirmed an order banning brokers Harsh and Jai Shirish Maniar and other entities from participating in the markets for their alleged role in manipulative trading, in which front entities of Ketan Parekh appear to have been involved.
"The investigations in the matter are ongoing, it would be just and reasonable to continue with ex-parte directions passed agianst Maniar group entities till the completion of the investigation," Sebi said in its order today.
The market watchdog was to consider whether its interim order need to be continued, revoked or modified in any manner since the Maniar group failed to submit its objections.
In the interim order dated June 4 this year, Sebi had banned Maniar group entities like Chandra Financial Services, Kundan Leasing and Finance, Jay Investrade, HSM Financial Services, Shanti Financial Services, Harsh Shirish Maniar and Jai Shirish Maniar.
They were found to be involved in the artificial trading of scrips of Cals Refineries, Confidence Petroleum India, Bang Overseas, Shree Precoated Steels (now known as Ajmera Realty & Infra) and Temptation Foods.
While investigating the nature of artificial trading in these scrips, Sebi had earlier said that debarred stock scamster Ketan Parekh appeared to be trading in the stock market through his front entities.
Shirish Maniar was arrested by CBI along with Parekh in Madhavpura Merchantile Cooperative Bank case. Parekh had siphoned off over Rs 880 crore leading to its collapse.
Earlier, Sebi had debarred Parekh and 17 other entities from participating in the market following a probe into purchase sale and dealing in the shares of companies like HFCL, Zee Telefilms, Adani Exports, Ranbaxy and Aftek Infosys between October 1999 and March 2001.
