A special court has sent former stock broker Ketan Parekh, a key figure in the 2001 securities scam involving the Madhavpura Mercantile Co-operative Bank, to judicial custody for not appearing in a case filed by the Securities and Exchange Board of India.
SEBI is prosecuting Parekh for various offences, including market manipulation. When he appeared before the court yesterday, he was sent to judicial custody by the 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 summons 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, SEBI had banned 26 entities after its investigations found that several companies and brokers were trading on Parekh's behalf. In March 2014, a special CBI court convicted Parekh for cheating and sentenced him to two years of rigorous imprisonment.
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