More trouble for Ketan Parekh as SEBI Court convicts him for failure to pay penalties

A Special Court in Mumbai this week convicted former stock broker Ketan Parekh and his relative Kartik Parekh, and sentenced them to three years in jail, for failing to deposit the penalty imposed by the Securities and Exchange Board of India (SEBI)..The case emanates from a complaint by SEBI against the Parekhs for offences under Section 24(2) read with Section 27 of the SEBI Act..Panther Fincap and Management Services Ltd (in which the Parekhs were directors) had acquired shares of one Shonkh Technologies International Limited, in excess of the threshold limits prescribed under the SEBI regulations..The adjudicating officer had passed an order imposing penalties, and the same was then challenged before the Securities Appellate Tribunal by the accused. However, the Tribunal dismissed the appeal..Special Public Prosecutor for SEBI Anubha Rastogi submitted that the accused had been directed to pay the penalty within 45 days of the order. She stated that since the order had not been challenged before the Supreme Court, the same had attained finality..She also submitted that deterrent punishment ought to be imposed on the Parekhs without showing any leniency. Advocates Abad Ponda and Burzin Bharucha, appearing for the accused, prayed for minimum punishment..The SEBI Special Judge VC Barde after hearing arguments held that SEBI had succeeded in establishing the guilt against Ketan and Kartik Parekh and sentenced them to undergo rigorous imprisonment for three years. They were further directed to pay a fine of Rs. 5 lakh each..Ketan Parekh was convicted in 2008 and is currently serving his sentence for his involvement in the infamous securities scam, wherein he had rigged prices of certain stocks..Read Judgment:.Image taken from here.