(a) whether Triumph Securities is banned from Trading;
(b) if so, the reasons therefor;
(c) the names of companies whose shares and securities Triumph had dealt;
(d) the name of companies whose promoters were involved in market manipulation; and
(e) the action has been taken/proposed to be taken against these promoters7
MINISTER OF THE STATE IN THE MINISTRY OF FINANCE (SHRI PAWAN KUMAR BANSAL)
(a) Yes, Sir.
(b) Securities and Exchange Board of India (SEBI) has informed that pursuant to excessive
volatility in the stock markets during February-March 2001 and apprehensions of alleged market
manipulation, SEBI had initiated investigations into the affairs relating to buying, selling
or dealings of various scrips including those in which Triumph Securities and its group
companies, known as Ketan Parekh group, were active. Investigation revealed that Ketan Parekh
group entities including Triumph Securities indulged in manipulation in the stock markets.
Therefore, the entities were banned from trading in securities markets.
(c) Triumph Securities along with its group entities dealt in various scrips viz. Aftek
Infosys Ltd, Adani Exports Ltd, DSQ Software, Global Tele-Systems Ltd, Global Trust Bank,
Himachal Futuristic Communications Ltd (HFCL), Lupin Lab Ltd, Shonkh Technologies Ltd, Padmini
Technologies, Zee Tele-Films Ltd., etc.
(d)&(e): The names of companies and promoters who were involved in market manipulation are:
DSQ Software Ltd., Aftek Infosys Ltd and Global Trust Bank. In case of these companies,
investigations have been completed and final orders passed by SEBI.
In case of the following companies, investigations have revealed prima facie involvement of the
companies / promoters for violation of SEBI Act, 1992 and regulations made thereunder including
market manipulation: Himachal Futuristic Communications Ltd, Adani Exports Ltd., Zee
Telefilms Ltd., Padmini Technologies Shonkh Technologies and promoters of Ranbaxy, Vidyut
Investment Ltd.
The action taken against these companies and their promoters are, inter-alia, in the nature of:
(i) prohibiting the promoters, directors, person acting in concert, brokers and clients from
buying,selling or dealing in securities for a certain time period;
(ii) filing of prosecution proceedings against certain companies, promoters and associate
entities;
(iii) issue of show cause notice for violation of SEBI (Prohibition of Fraudulent and Unfair
Trade Practices Relating to Securities Market) Regulations, 1995.
(iv) imposition of monetary penalties.