KP scam: Sebi bans 28 firms, 8 individuals

today banned 28 stock-broking companies and eight individuals from trading in shares for five years for their role in the Ketan Parekh securities scam. In the Sebi order delivered by whole-time member G Anantharaman, they were also debarred from accessing the capital market and associating with any intermediary for five years. The companies banned include VB Impex Private Limited J P Promoters Private Limited Churuwala Exports Private Limited Zinga Chemicals Private Limited and Mudra Capital Services Private Limited while the individuals debarred from trading are Sanjay Kumar Gupta, Kishen Goenka, Prakash Kumar Damani, Alok Khetan, Sanjeev Beriwal, Sunil Kumar Kishorepuria, Promod Kumar Kishorepuria and Raj Kumar Kishorepuria. They have been found guilty of aiding and abetting the process of allotment of Padmini Technologies by indulging in unusual financial accommodation with the company and off-loading shares to Ketan Pakekh entities in June 1999. The market regulator informed that it had investigated the excessive volatility in certain companies’ share prices between April 1, 2000, and March 31, 2001, and found that the KP group firms and brokers had been carrying out manipulative activities.