SEBI court rejects Ketan Parekh's plea for compounding of case for penalty payment default

A peculiar tribunal present has rejected erstwhile banal marketplace broker Ketan Parekh's plea for the closure of a lawsuit initiated against by SEBI for not paying a punishment imposed by the markets regulator, noting the accused prima facie violated the norms "intentionally".

The peculiar justice for cases nether the Securities and Exchange Board of India (SEBI) Act, RM Jadhav, successful an bid passed connected October 4, ruled that Parekh's plea for compounding of the lawsuit against him "is unwarranted and uncalled for".

SEBI initiated a transgression lawsuit against Parekh aft helium failed to wage the punishment for violating the board's regulation. In response, Parekh filed an exertion earlier the tribunal for closure of the lawsuit by compounding.

Parekh, successful his plea, stated that the ailment had been filed successful 2003 for the alleged usurpation dated 1997.

Almost 25 years lapsed since the alleged violation. They offered to wage immoderate magnitude sought by the board, Parekh's lawyer submitted earlier the court.

"The applicant desires to compound offence and is consenting to wage the taxable substance of the contiguous ailment by satisfying the norms and factors stated by the SEBI," Parekh submitted done his lawyer.

Parekh contended that connected erstwhile occasions excessively cases against him were closed aft outgo of the fine. Until present helium has paid a good of Rs 3.37 crore.

However, SEBI argued that Parekh, done his associates and concern companies, placed orders successful ample quantities exceeding the prevailing marketplace terms and besides cornered a ample excavation of shares done the disconnected marketplace deals.

Further, the shares were sold successful ample volumes astatine a manipulated precocious terms of scrips, causing the banal marketplace to crash, the committee submitted.

Considering the gravity of the offence, the accused were debarred from entering the banal market. However, they dealt successful the banal marketplace for which the adjudication bid imposing punishment was passed, according to SEBI.

The tribunal noted, "prima facie the acts of the accused successful violating the regularisation of regularisation of SEBI are intentional".

Further, determination is simply a usurpation of the SEBI rules and regulations by the accused adjacent aft the debarment for 14 years, the tribunal stated.

"The accused is alleged to person travelled overseas without seeking support of the court. The beingness of accused Ketan Parekh is secured connected proclamation. So, the behaviour of the accused successful not pursuing the orders is besides required to beryllium noted," the tribunal observed.

Considering the facts and circumstances, the justice noted that the SEBI was justified successful opposing Parekh's plea.

"On the contrary having owed respect to the quality of allegations, and behaviour of the accused, I recovered that the compounding of the offence is unwarranted and uncalled for," the tribunal observed and rejected the plea.