Sebi debars Jermyn from market

The Securities and Exchange Board of India (Sebi) today debarred foreign corporate Jermyn LLC from accessing the Indian securities market and also prohibited it from buying, selling and dealing in securities for its prima facie linkages with the tainted broker Ketan Parekh and Dharmesh Doshi in the stock market scam of 2001. ‘‘In view of the grave emergency and with a view to protect the interest of the investors and securities market, these steps have been taken,’’ Sebi said. The Sebi directions will come into force from immediate effect. Jermyn LLC is a sub-account of Taib Capital, a foreign institutional investor (FII) registered with Sebi. The sub-account was directed by the FII division of Sebi in November last year not to buy or sell any security in any manner till further order in the wake of Sebi’s investigation. Here, the regulator found that Jermyn LLC is associated with Jermyn Capital PLC, a company registered with Financial Service Authority (FSA) of the UK with Dharmesh Doshi as one of its director. Sebi said Doshi was an associate of Ketan Parekh, main accused in securities market scam of 2001. Jermyn LLC, challenged Sebi’s order and moved SAT, to which the Tribunal asked Sebi to pass a formal order and complete the investigation by January 13 so that it can further hear the case. According to the Sebi, the earlier name of Jermyn Plc was Triumph Securities UK Plc which was a 100% subsidiary of Triumph International Finance (India) Limited (TIFIL), a Ketan Parekh related entity. Dharmesh Doshi, a co-accused in the Ketan Parekh scam and a person against whom non-bailable warrant has been issued by the Indian Court and Red Corner Notice has been issued by the Interpol was the Executive Director in Jermyn Plc looking after vital functions. ‘‘Other enforcement agencies like Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) have also conducted investigations in the wake of the market scam of 2001 and initiated punitive actions against these entities,’’ Sebi said. SAT adjourns hearing of NSDL plea MUMBAI The Securities Appellate Tribunal (SAT) adjourned the hearing of an appeal filed by the National Securities Depository Limited (NSDL) challenging a circular filed by Sebi with respect to review of the demat charges. The further hearing to this plea will take place on February 3.