Ketan Parekh Scam

Who was KPQualified Chartered Accountant A stock broker based in MumbaiPenalized with a disqualification

3/6/20152

The K10 Aftek InfosysDSQ SoftwareGlobal TelesystemsHimachal Futuristic CommunicationsPentamedia GraphicsSatyam ComputersSilverline TechnologiesSSIZee TelefilmsPritish Nandy Communications3/6/20153

Sources of fundsForeign Institutional InvestorsPromotersFinancial institutions3/6/20154

The Modus operandiCollusion with promotersPromoters pay KPKP buys from the market The K10 stocks P/E up at international levelsScam unfolded over the years 1999 to 2001, coinciding with the dot-com boom3/6/20155

The Modus operandiStrong network of brokersUsed the smaller stock exchanges like CSEPledge shares as collateral for fundingKP defaults on payment to Bank of IndiaBadla system in existence3/6/20156

Events leading to the break-outGlobal meltdown in ICE shares Trend comes to the Indian market as wellCash crunch for the bull operatorsKP defaultsMore brokers default and crisis looms large..

3/6/20157

The falloutsKP convicted in 2008All deferral products including the badla system banned by SEBIDecided to do away with brokers controlling exchanges3/6/20158

3/6/20159