Canfina Mutual Fund Scam: Ketan Parekh allowed to travel to UK for family reasons

In latest development, Supreme Court has allowed stock broker Ketan Parekh to travel abroad to United Kingdom for medical treatment of his daughter. A bench headed by Justice D Y Chandrachud said, " petitioner (Parekh) wishes to travel to UK to attend to medical need of his daughter." bench ted that Parkeh had earlier also been allowed to travel abroad on several occasions. He has been granted permission on all previous six occasions. Ketan Parekh was convicted in Canfina Mutual Fund scam case and was also held guilty in case related to 1992 stocks scam, duping CFS of more than Rs 47 crores.

Ketan Parekh’s role in scams

Ketan was a chartered accountant and played a significant role in overall scam. He was a part of Harshad Mehta's GrowMore investments which committed high-profile scam. However, Parekh was t convicted in 1992 scam. However, Parekh was sentenced to three years of jail time in 2018 on charges of manipulating stock market for a different scam. Parekh’s success coincided with rise of IT companies in share market during 1999-2000 era as he made a fortune in shares of IT and telecom companies. se shares were staple for any stock broker and were highly in demand as tech industry was rapidly growing across world. He had ability to choose stock that would arise in near future. However, true reason was soon out in open.

Ketan Parekh would secure funds by borrowing from Ahmedabad-based Madhavpura Mercantile Cooperative Bank. bank officials were also complicit in scam and ar bank that helped him with funds was Global Trust Bank. Parekh would invite people from high positions in big companies to invest in shares and exit market when shares had climbed. In order to lure institutional investors, Parekh would conduct circular trading inside his own close circle to inflate value of stocks and make m look more attractive. Using this method, K10 stocks like Pentafour Software’s price went from Rs 175 a share to Rs 2,700 and that of Global Telesystems rose from Rs 185 to Rs 3,100.

Im: Pioneer NEws