The Hindu : SEBI ban on Ramesh Gelli, KP entities to deal in GTB scrips

Online edition of India's National Newspaper
Wednesday, Jan 01, 2003

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SEBI ban on Ramesh Gelli, KP entities to deal in GTB scrips

MUMBAI DEC. 31. The Securities and Exchange Board of India today debarred the promoters of Global Trust Bank (GTB) Ramesh Gelli and associates, and Ketan Parekh entities from dealing in GTB scrips in any manner for alleged manipulations in the bank's shares, till the regulator completes investigations in the case.

The SEBI Chairman, G. N. Bajpai, in his order said investigations at the current stage prima facie show that the promoter group (Mr. Gelli and associates) KP entities and others were involved in market irregularities, detrimental to the interest of markets and investors. Persons and entities against whom action is taken under Section 4(3), 11 and 11B of the SEBI Act have been debarred from buying, selling, transferring, pledging or disposing of or dealing in any manner in GTB shares till the probe is completed. The post decisional hearings before the SEBI Chairman for these entities are scheduled on February 3 and 4, it said. The promotor group entities had acquired 1.44 crore GTB shares in 1999 from erstwhile technical collaborators — T A Enterprise of Malaysia and Hembrecht & Quist — and sold about 1.31 crore shares by way of synchronised/structured deals/to entities owned by or associated with KP around the same period. KP entities used these shares to create artificial market and to manipulate prices of GTB shares during November 1999 to February 2000 prior to the preferential allotment in March 2000.

PTI

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