Sebi to hear Gelli, Ketan entities in GTB case today

The Securities and Exchange Board of India (Sebi) has completed its investigations into alleged price manipulation in the shares of Global Trust Bank (GTB). Sebi Chairman G.N. Bajpai is expected to give post-decisional hearing to the bank’s promoters — Ramesh Gelli and his associates — and Ketan Parekh (KP) group entities on February 3-4, following its order of December 2002 debarring them from dealing in the stock of GTB in any manner, for alleged manipulations in the bank’s shares, till the investigations in this case are completed. Sebi’s action on the bank’s promoter group and the stockbroker came as a follow-up to the report of the joint parliamentary committee (JPC), which at length dwelt on the bank-broker-promoter nexus in its report on the stock- market crash of March 2001. Sebi’s move is seen as part of its action-taking exercise following the submission of the JPC report. Gelli and associates and Ketan Parekh entities, against whom action is taken under section 4(3), 11 and 11B of 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. Bajpai, in his order restraining GTB promoter and KP entities, said that investigations at the current ‘prima facie’ stage shows that the promoter group (Gelli and associates), KP entities and others were involved in market irregularities (in GTB shares), and this was detrimental to the interest of markets and investors.