| MUMBAI:
The Securities and Exchange Board of India (Sebi) has let off Zee Telefilms (since
changed to Zee Entertainment Enterprises Ltd) and its promoters in connection
to large scale market manipulation of Ketan Parekh's scam during October 1999
to March 2001.
Sebi
has, however, issued a warning to the company and its promoter
entities. In his report, Sebi whole-time member TC Nair said,
“I also direct Zee Telefilms and its promoters to note
that any similar activity and or instances of violations or
non-compliance of the provisions of SEBI act and rules and
regulations framed thereunder in future shall be dealt with
stringently.”
The
Sebi investigation showed that the price of Zee scrip moved
from Rs 476 as on 1 October 1999 to Rs 1,555 as on 24 February
2000 and then came down to Rs 121 as on 30 March 2001.
However
Sebi said that Zeel and the promoter entities were not directly
involved in the market manipulation with Ketan Parekh (KP)
entities from October 1999 to March 2001.
In
his report, Nair could not find any conclusive evidence to
penalise Zee. “Though the notices were not involved directly
in manipulating the scrip of Zee, their conduct and actions
give an impression that they aided and abetted KP entities
in large scale market manipulation of various scrips including
Zee.”
The
promoters of Zeel include Churu Trading, Briggs Trading, Prajatma
Trading, Ganjam Trading, Premier Finance and Trading, and
Digital Super Highway.
| 
