PRESS RELEASE - SEBI
May 17, 2002
PR No. 94/2002

Press Release

  1. The index movements at stock exchanges especially during mid February and mid March 2001 were showing excessive volatility and there were apprehensions of possible attempts by certain entities to distort the true price discovery and to manipulate the securities market.

  2. SEBI undertook investigations to find out the role of entities including that of Triumph International Finance (India) Ltd. (TIFIL), Triumph Securities Ltd., NH Securities Ltd.,Classic Share and Stock Brokers Ltd. and other entities controlled and connected with Ketan Parekh (KP). 

  3. After taking into consideration the material and evidence on record vide order dated 4/4/2001, Triumph International Finance (India) Ltd. along with other entities was ordered not to undertake any fresh business as stock broker and merchant banker till further orders were passed by SEBI. The said order was confirmed after a post-decisional hearing by another interim order dated 21st June,2001. An Enquiry Officer was also appointed. 

  4. The Enquiry Officer submitted his report on 25/2/2002 and found TIFIL to have indulged in market manipulations in the scrips of Lupin Laboratories and GTB, manipulated the market and creating artificial volumes. TIFIL entered into large buy orders at a price progressively higher than the last traded price which resulted in sweeping the existing buy offers and artificial raising of the scrip prices.

  5. It has also been found that TIFIL failed to honour the trade commitments and did not deliver the shares to the purchasers even when received payment from the buyers. TIFIL also failed to make payments to the sellers in several occasions even when shares were delivered to buyer and indulged in fraudulent and unfair trade practices relating to the securities market. TIFIL acted as an entity controlled by Ketan Parekh.

  6. Shri Jatin Sarvaiya and Shri Dharmesh Doshi appeared for a personal hearing before the Chairman and pleaded not guilty. After taking into account the findings of the enquiry and the submissions of the parties, the Chairman passed an order on 16th May,2002 cancelling the registration of TIFIL as stock broker with immediate effect under SEBI ( Stock Brokers and Sub-Brokers ) Regulations,1992.