The Telegraph
Since 1st March, 1999
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Gelli, Parekh shut out of GTB scrip

Mumbai, Dec. 31: The Securities and Exchange Board of India (Sebi) today barred Ramesh Gelli, Ketan Parekh and KP entities from dealing in shares of the Global Trust Bank.

Sebi chairman G. N. Bajpai, in his order, said investigations at the current stage prima facie show that the promoter group (Gelli and associates), KP entities and others were involved in market irregularities (in GTB shares), detrimental to the interest of markets and investors.

Persons and entities against whom action is taken under section 4(3), 11 and 11b of Sebi Act have been debarred from buying, selling, transferring, pledging or disposing off or dealing in any manner in GTB shares till the probe is completed.

“The limited purpose of the present order is to prevent the said entities from indulging in further price manipulation, circular trading, synchronised trading, parking of shares to circumvent the provisions of Sebi Regulations,” the order said.

The post-decisional hearings before Sebi is scheduled on February 3-4, 2003, it said.

The order comes at a time when there were reports of Gelli planning to stage a comeback. Banking circles say this would effectively put a spanner in the purported return of Gelli, the founder and former chief of GTB to takeover the reins of the Hyderabad-based bank.

It seems Gelli was plotting a comeback after earning a so-called reprieve from JPC for his dubious role in the proposed merger of UTI Bank and GTB where he was accused of price rigging along with Big Bull Ketan Parekh. It was debatable whether he got reprieve as JPC had not given Gelli a clean chit. It had just failed to mention his name, say Sebi sources.

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