The Hindu Business Line : ED probe into 8 companies

THE Enforcement Directorate (ED) has initiated investigations into eight companies — Maars Technologies, Mascon Global, Mukta Arts, Tips Industries, Balaji Telefilms, Kopran group, Nirma group and Cadilla group for involvement in market manipulation and their proximity to Ketan Parekh.

The Action Taken Report (ATR) on the recommendations of the Joint Parliamentary Committee (JPC) on the stock market scam stated that these companies have been added to the list of 15 companies mentioned earlier on the recommendations made by the market regulator — Securities and Exchange Board of India (SEBI).

The JPC had commented on the suspect role of 15 promoters and corporate entities. "Files in respect of 15 promoters/companies stated to be close to Ketan Parekh were opened by them to determine the nexus with brokers through OCBs (overseas corporate bodies) and FIIs (foreign institutional investors) and to trace violation of RBI/SIA norms while transferring equity to OCBs and FIIs," said the ATR.

Out of the 15 companies mentioned in the JPC enquiries on DSQ group, Zee Telefilms, HFCL, Global Telesystems, Global Trust Bank, Silverline Technologies and SSI Ltd were initiated to look into any FEMA violations. Investigations have been directed towards the promoters of others such as Adani Exports, Padmini Technologies, Aftek Infosys, Satyam Computers, Ranbaxy Ltd, Lupin Labs, Pentamedia Graphics and Shonkh Technologies.

Currently, investigations are on with respect to these 23 companies. SEBI had furnished four sets of interim reports inclusive of its investigation regarding scrips of certain corporate bodies. However, a final report from SEBI on this issue was not available to the JPC.

The committee, therefore, urged SEBI, the Department of Company Affairs and other investigative agencies to expedite and complete their investigations in the involvement of promoters.

"The Government should take appropriate action under the provisions to the relevant laws on the basis of outcome of their findings," JPC said.

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ED probe into 8 companies