The markets regulator has penalized a father-son duo and ordered disgorgement of their illicit gains. But, in the process, it has given its own rules the go-by.
It should have been an open and shut case.
On 10 February, the Securities and Exchange Board of India passed its final order on an investigation it initiated on its own. The perpetrators had been caught in the act, justifying the punishment meted out to them.
The case pertains to Ketan Parekh (not the big bull), an employee of Mumbai-based Quest Investment Advisors, which manages Rs 1,800 crore of investor funds. Parekh’s job at the firm as a dealer involved passing on “buy” or “sell” orders recommended by the firm’s research wing to more than 10 empanelled brokers.
Using its …
Surendar helps lead the newsroom at The Morning Context as executive editor. Over the years, Surendar has worked in industries from pharmaceuticals to diamonds, as well as a stint as an equity analyst. In his long career as a business journalist, he has led teams at The Times of India, India Today and Fortune India. He was part of the founding team at Forbes India and interned at and published in The Times, London.
Executive Editor
surendar@mailtmc.com
Mumbai