Reportedly market regulator SEBI has taken a big action and brought forward the three people who are accused of the 'front-running' scam. Through this, they have earned illegal money of 65.77 crores. However, this is not the first time, but Ketan has been convicted in many stock market scams before this too. He has such an addiction to manipulating the stock market that he cannot get rid of it.
Meanwhile SEBI has banned Ketan from any kind of participation in the stock market. Earlier also he was banned from 2003-2017. However, even during the ban, he kept manipulating the market in some way or the other, kept working through proxy and front accounts, due to which his trading with 26 institutions was banned in the year 2009. Eventually, in the year 2023, he was convicted for duping an investor of Rs 2 crore along with a female associate. Ketan Parekh learned the nuances of the stock market from harshad mehta, who was also called the big bull of the stock market. harshad had shaken the stock market in the 1980-1990s. According to RBI, harshad had committed a fraud of about Rs 4025 crore with his tricks. He had completely destroyed the trust of investors in the stock market. Ketan took advantage of that. He replicated Mehta's model to increase the share prices.
Moreover Ketan made chennai based software company Pentafor, which was going through a huge financial crisis in the 90s, his target. He, along with the promoters, sold all the shares of the company and also started selling them. Not only this, along with his associates, he also started buying the company's shares. This increased the price of Pentaphor software from Rs 175 to Rs 2,700. He named it Pentaphor formula. Ketan, a chartered accountant by profession, adopted the same Pentafour formula with 10 companies, which were named K-10 or Ketan-10. These included Pentamedia Graphics, HFCL, GTL, Silverline Technologies, Ranbaxy, Zee Telefilms, Global Trust Bank, DSQ software, FTech Infosys and SSI. Like Pentafour, the price of shares like Visualsoft increased from Rs 625 to Rs 8,448 per share and the price of Sonata software increased from Rs 90 to Rs 2,150.
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